Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 07, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | OMED | |
Entity Registrant Name | OncoMed Pharmaceuticals Inc | |
Entity Central Index Key | 1,302,573 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 38,431,086 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 14,125 | $ 13,277 |
Short-term investments | 74,299 | 89,814 |
Accounts receivable and other receivables | 258 | 405 |
Prepaid and other current assets | 1,669 | 1,709 |
Total current assets | 90,351 | 105,205 |
Property and equipment, net | 2,934 | 3,275 |
Other assets | 1,846 | 1,842 |
Total assets | 95,131 | 110,322 |
Current liabilities: | ||
Accounts payable | 704 | 2,565 |
Accrued liabilities | 2,956 | 3,940 |
Accrued clinical liabilities | 3,286 | 4,434 |
Current portion of deferred revenue | 27,919 | 82,193 |
Total current liabilities | 34,865 | 93,132 |
Deferred revenue, less current portion | 9,748 | 61,645 |
Deferred rent, less current portion | 3,800 | 3,765 |
Non-current income tax payable | 386 | 383 |
Total liabilities | 48,799 | 158,925 |
Stockholders’ equity (deficit): | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized at March 31, 2018 and December 31, 2017; no shares issued and outstanding at March 31, 2018 and December 31, 2017 | ||
Common stock, $0.001 par value; 145,000,000 shares authorized at March 31, 2018 and December 31, 2017; 38,259,662 shares and 38,212,505 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively | 38 | 38 |
Additional paid-in capital | 405,397 | 403,077 |
Accumulated other comprehensive income | 156 | 289 |
Accumulated deficit | (359,259) | (452,007) |
Total stockholders’ equity (deficit) | 46,332 | (48,603) |
Total liabilities and stockholders' equity (deficit) | $ 95,131 | $ 110,322 |
Condensed Balance Sheets (Unau3
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
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 | 38,259,662 | 38,212,505 |
Common stock, shares outstanding | 38,259,662 | 38,212,505 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue: | ||
Collaboration revenue | $ 7,849 | $ 5,302 |
Other revenue | 911 | |
Total revenue | 7,849 | 6,213 |
Operating expenses: | ||
Research and development | 8,387 | 23,987 |
General and administrative | 5,394 | 4,984 |
Total operating expenses | 13,781 | 28,971 |
Loss from operations | (5,932) | (22,758) |
Interest and other income, net | 363 | 154 |
Loss before provision for income taxes | (5,569) | (22,604) |
Provision for income taxes | 5 | 4 |
Net loss | $ (5,574) | $ (22,608) |
Net loss per common share, basic and diluted | $ (0.15) | $ (0.61) |
Shares used to compute net loss per common share, basic and diluted | 38,243,427 | 37,271,023 |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (5,574) | $ (22,608) |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on available-for-sale securities, net of tax | (133) | 8 |
Total comprehensive loss | $ (5,707) | $ (22,600) |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities | ||
Net loss | $ (5,574) | $ (22,608) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 423 | 428 |
Stock-based compensation | 2,278 | 3,123 |
Changes in operating assets and liabilities: | ||
Accounts receivable and other receivables | 147 | 863 |
Prepaid and other current assets | 40 | (708) |
Other assets | (4) | 444 |
Accounts payable | (1,861) | (980) |
Accrued liabilities | (888) | (1,663) |
Accrued clinical liabilities | (1,148) | (3,146) |
Deferred revenue | (7,849) | (5,331) |
Deferred rent | 34 | 600 |
Net cash used in operating activities | (14,402) | (28,978) |
Investing activities | ||
Purchases of property and equipment | (172) | (400) |
Purchases of short-term investments | (54,270) | (9,967) |
Maturities of short-term investments | 69,651 | 39,854 |
Net cash provided by investing activities | 15,209 | 29,487 |
Financing activities | ||
Proceeds from issuance of common stock related to the exercise of options and employee stock plan purchases | 41 | 1,733 |
Net cash provided by financing activities | 41 | 1,733 |
Net increase in cash and cash equivalents | 848 | 2,242 |
Cash and cash equivalents at beginning of period | 13,277 | 36,953 |
Cash and cash equivalents at end of period | 14,125 | 39,195 |
Supplemental cash flow information: | ||
Accrued liabilities for purchase of property and equipment | $ 82 | $ 30 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2018 | |
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 active 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 | 3 Months Ended |
Mar. 31, 2018 | |
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”) for interim reporting. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments that are necessary for a fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or for any subsequent interim period. The condensed balance sheet data as of December 31, 2017 was derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The accompanying condensed financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed with the Securities and Exchange Commission (the “SEC”) on March 9, 2018. There have been no material changes to our significant accounting policies as of and for the three months ended March 31, 2018, except for the policy related to revenue recognition. 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, but not limited to, those related to revenue recognition, preclinical study and clinical trial accruals, fair value of assets and liabilities, restructuring charges, stock-based compensation and income taxes. 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. Revenue Recognition Effective January 1, 2018, the Company adopted Accounting Standards Codification, or ASC, Topic 606, Revenue from Contracts with Customers, using the modified retrospective transition method. Under this method, the Company recorded a cumulative adjustment to the opening balance of accumulated deficit and to deferred revenue. Under Topic 606, the Company recognizes revenue when it transfers control of promised goods or services to its customers in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once a contract is determined to be within the scope of Topic 606, the Company assesses the goods or services promised within the contract and determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company evaluated its existing contracts and only applied Topic 606 to those contracts that were not completed at January 1, 2018. As a result of this evaluation, the Company determined that only its collaboration with Celgene Corporation (“Celgene”) is within the scope of Topic 606. The Company the five-step model Milestone Payments At the inception of each arrangement that includes development, regulatory or commercial milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant reversal of cumulative revenue would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or partner, such as regulatory approvals, are not considered probable of being achieved until those approvals or the underlying activity has been completed Customer Concentration Customers whose revenue accounted for 10% or more of total revenues were as follows: Three Months Ended March 31, 2018 2017 Bayer Pharma AG ("Bayer") * 13% Celgene 100% 84% * Net Loss per Common Share Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per common share is computed by dividing the net loss by the weighted-average number of common shares and common share equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, potentially dilutive securities consisting of common stock subject to repurchase, stock options and restricted stock units are considered to be common stock equivalents and were excluded in the calculation of diluted net loss per common share because their effect would be anti-dilutive for all periods presented. Newly Adopted and Recent Accounting Pronouncements Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. In May 2014, the Financial Accounting Standards Board (“FASB”) issued a comprehensive new standard on revenue from contracts with customers, ASU No. 2014-09, Revenue from Contracts with Customers, or Topic 606. The standard’s core principle is that a reporting entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt this new guidance. In 2016, the FASB updated the guidance for reporting revenue gross versus net to improve the implementation guidance on principal versus agent considerations, and for identifying performance obligations and the accounting of intellectual property licenses. In addition, the FASB introduced practical expedients and made narrow scope improvements to the new accounting guidance. Collaboration with Celgene The Company adopted the accounting standard update on January 1, 2018 using the modified retrospective approach, for its collaboration agreement with Celgene. Therefore, comparative historical information will not be adjusted and will continue to be reported under ASC 605 with the impact of the transition reflected in the opening balance of accumulated deficit as of January 1, 2018. The consideration the Company is eligible to receive under this agreement includes upfront payments, milestone payments and program opt-in payments. The new revenue recognition standard differs from ASC 605 in many respects, such as in the accounting for variable consideration and the measurement of progress toward completion of performance obligations. The most significant impact of the standard relates to the Company’s method of revenue recognition for performance obligations that are delivered over time. Under the new standard, milestone payments are included in the transaction price as variable consideration, subject to a constraint, and are allocated to the performance obligations in the contract when recognized. Through December 31, 2017, the Company also received payments from Celgene to reimburse the costs of research and development services performed by the Company; these payments were historically recorded as other revenue. As the performance of these research and development services was at the Company's discretion and are not reflective of a commitment or performance obligation pursuant to the Celgene agreement, the reimbursement paid to the Company has been excluded from the transaction price. The Company’s deferred revenue associated with its Celgene collaboration agreement as of December 31, 2017 under Topic 605 was $143.8 million. As a result of adopting Topic 606, the Company recorded a $98.3 million reduction to its deferred revenue and opening accumulated deficit on January 1, 2018 as a result of the cumulative impact of the change in the recognition of the upfront and milestone payments using the input method (described further in Note 5, “Collaborations” Collaborations with Bayer and GlaxoSmithKline (“GSK”) As the GSK collaboration was terminated in its entirety on October 28, 2017, this arrangement was outside the scope of Topic 606 as of the adoption date. For the Bayer collaboration, Bayer terminated all biologic therapeutic programs under the collaboration effective June 16, 2017, while the small molecule therapeutics program remained active. Refer to Note 5, “Collaborations,” for further details. The Company has determined 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 was 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 has concluded that there was no transition adjustment to be recognized on January 1, 2018 for these two agreements. Impact of Adoption The following table summarizes Balance at December 31, 2017 Adjustment Balance at January 1, 2018 Condensed Balance Sheets: Deferred revenue, current portion $ 82,193 $ (51,299 ) $ 30,894 Deferred revenue, non-current portion 61,645 (47,023 ) 14,622 Accumulated deficit (452,007 ) 98,322 (353,685 ) For the three months ended March 31, 2018 As Reported Adjustment Balances without the adoption of Topic 606 Condensed Statements of Operations: Collaboration revenue 7,849 12,700 20,549 Income (loss) from operations (5,932 ) 12,700 6,768 Net income (loss) (5,574 ) 12,700 7,126 Net income (loss) per common shares, basic and diluted $ (0.15 ) $ 0.33 $ 0.19 Contract Balances Upfront payments and fees may be required to be recorded as deferred revenue upon receipt or when due, and recognized in a future period when or as the Company performs its obligations under these arrangements. Amounts payable to the Company are recorded as accounts receivable when the Company’s right to consideration is unconditional. As of March 31, 2018, the contract liabilities, which consisted of deferred revenue, decreased by a total of $106.1 million from December 31, 2017, of which $98.3 million was related to the cumulative adjustment to the opening balance of accumulated deficit upon the adoption of Topic 606 on January 1, 2018 and $7.8 million related to revenue recognized for the three months ended March 31, 2018. Upon adoption of the standard as of January 1, 2018, ASU No. 2016-02, Leases (Topic 842 ) In February 2016, the FASB issued ASU No. 2016-02, Leases accounting lease |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 3 Months Ended |
Mar. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Investments | 3. Cash, Cash Equivalents and Investments The fair value of securities at March 31, 2018 and December 31, 2017, were as follows (in thousands): March 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value Money market funds $ 183 $ — $ — $ 183 U.S. treasury bills 74,143 157 (1 ) 74,299 Total available-for-sale securities $ 74,326 $ 157 $ (1 ) $ 74,482 Classified as: Cash equivalents $ 183 Short-term investments 74,299 Total cash equivalents and investments $ 74,482 As of March 31, 2018, the Company had a total of $88.4 million in cash, cash equivalents and short-term investments, which includes $14.1 million in cash and cash equivalents and $74.3 million in short-term investments. 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 available-for-sale securities $ 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 and short-term investments, which includes $13.3 million in cash and $89.8 million in short-term investments. All available-for-sale securities held as of March 31, 2018 and December 31, 2017 had contractual maturities of less than one year. There have been no significant realized gains or losses on available-for-sale securities for the periods presented. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The Company records its financial assets and liabilities at fair value. The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value, and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The Company applies the following hierarchy for disclosure of the inputs used to measure fair value, which prioritizes the inputs used into three broad levels as follows: • Level 1: Inputs which include quoted prices in active markets for identical assets and liabilities. • Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used in such measurements were as follows (in thousands): March 31, 2018 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 183 $ — $ — $ 183 U.S. treasury bills — 74,299 — 74,299 Total $ 183 $ 74,299 $ — $ 74,482 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 Where quoted prices are available in an active market, securities are classified as Level 1. The Company classifies money market funds as Level 1. When quoted market prices are not available for the specific security, then the Company estimates fair value by using benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. The Company classifies U.S. Treasury securities as Level 2 . |
Collaborations
Collaborations | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Collaborations | 5. Collaborations Summary of Collaboration Related Revenue The Company has recognized the following revenues from its collaboration agreements during the three months ended March 31, 2018 and 2017 (in thousands): Three Months Ended March 31, 2018 2017 Celgene: Recognition of upfront payments $ 7,849 $ 5,013 Other revenue — 210 Celgene total 7,849 5,223 Bayer: Recognition of upfront payments — 139 Other revenue — 698 Bayer total — 837 GSK: Recognition of upfront payments — 150 Other revenue — 3 GSK total — 153 Total collaboration related revenue $ 7,849 $ 6,213 Adoption of ASU No. 2014-09 On January 1, 2018, the Company adopted ASU No. 2014-09 using the modified retrospective method. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with Topic 605. Celgene Strategic Alliance In December 2013, the Company entered into a collaboration agreement with Celgene pursuant to which the Company and Celgene are collaborating on research and development programs directed to the discovery and development of novel biologic therapeutics. As of March 31, 2018, the Company is not eligible to receive any milestone payments under its collaboration with Celgene prior to the point that Celgene exercises its options. The Company is eligible to receive 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. Following Celgene’s exercise of its option for a biologic therapeutic program, the Company will have co-development and co-commercialization rights for the navicixizumab program and the rosmantuzumab program in the U.S. If the Company chooses to co-develop and co-commercialize biologic therapeutic products in such programs in the U.S., the Company will be responsible for one-third and Celgene will be responsible for two-thirds of worldwide development costs, and the Company and Celgene will share 50% of all product profits and losses in the U.S. Outside the U.S., Celgene will have exclusive development and commercialization rights for such programs, with the Company eligible to receive milestones and tiered royalties on product sales. With respect to the anti-TIGIT program, and the navicixizumab program and/or the rosmantuzumab program if the Company elects not to co-develop and co-commercialize biologic therapeutic products under such program, Celgene will have exclusive development and commercialization rights worldwide, with the Company eligible to receive milestones and tiered royalties on worldwide product sales, with such royalties being increased where the Company had the right to co-develop and co-commercialize biologic therapeutic products under such program but elected not to do so. If Celgene successfully develops and commercializes all of the product candidates, the Company could receive additional contingent consideration of up to $1.29 billion for the achievement of post-option exercise development, regulatory events and sales 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 with Celgene. The Company assessed its collaboration agreement with Celgene in accordance with Topic 606 and concluded that Celgene is a customer. The Company determined that its performance obligation under the arrangement with Celgene is research and development services. to assist Celgene in determining whether or not to exercise its options Prior to recognizing revenue, the Company estimates the transaction price, including variable consideration that is subject to a constraint. Amounts of variable consideration are included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration includes payments based upon the achievement of specified milestones, and royalty payments based on product sales derived from the collaboration. Under the collaboration agreement, the Company determined that the non-refundable upfront cash payment of $155.0 million and stock premium of $1.7 million received in December 2013 constitute consideration to be included in the transaction price. The Company also included in the transaction price the $70.0 million demcizumab safety milestone that was achieved in December 2015 and the two designation milestone payments of $2.5 million each for the designation of anti-RSPO3 (OMP-131R10) and anti-TIGIT as clinical candidates in 2014 and 2015, respectively. The total consideration received of $231.7 million constitutes the transaction price at the transition date for Topic 606. Through December 31, 2017, the Company also received a total of $2.5 million in the aggregate from Celgene to reimburse the costs of research and development services performed by the Company; these reimbursements have historically been recorded as other revenue. As the performance of these research and development services was at the Company's discretion and is not a commitment or performance obligation pursuant to the Celgene collaboration agreement, the reimbursement paid to the Company has been excluded from the transaction price. None of the remaining development and regulatory milestone amounts have been included in the transaction price, as all milestone amounts were fully constrained as of January 1, 2018 and March 31, 2018. As part of the Company’s evaluation of the constraint, the Company considered numerous factors, including that receipt of the milestone amounts is outside the control of the Company and contingent upon success in future clinical trials. Any consideration related to royalties on net product sales will be recognized when the related sales occur and therefore have also been excluded from the transaction price. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur. Following the adoption of Topic 606, the Company recognizes collaboration revenue by measuring the progress toward complete satisfaction of the performance obligation using an input measure. The Company concluded the method that best correlates with progress of the services provided to Celgene is the input method, based on actual costs incurred to date compared to the overall total expected costs to satisfy the performance obligation. The Company will evaluate the estimate of expected costs to satisfy the performance obligation each reporting period and make adjustments for any significant changes. Under Topic 606, collaboration revenue under the Company’s collaboration agreement with Celgene from inception of the agreement through January 1, 2018 was $186.2 million and deferred revenue was $45.5 million as of January 1, 2018. The performance obligation under the contract is estimated to be substantially complete by the third quarter of 2019. The impact of adopting Topic 606 on the accounting treatment of the Company’s collaboration agreement with Celgene primarily relates to the change in the timing of revenue recognition of the transaction price. The Company’s deferred revenue associated with its Celgene collaboration agreement as of December 31, 2017 under Topic 605 was $143.8 million. Upon adoption of the standard as of January 1, 2018, the Company recognized a cumulative catch up adjustment of $98.3 million, which was recorded as a decrease to the opening balance of accumulated deficit, and a corresponding decrease in the deferred revenue balance from the Company’s collaboration with Celgene. Bayer Strategic Alliance In June 2010, the Company entered into a strategic alliance with Bayer to discover, develop and commercialize novel anti-CSC biologic and small molecule therapeutics targeting the Wnt signaling pathway. Effective June 16, 2017, Bayer terminated all biologic therapeutic programs under its collaboration with the Company. The Company is no longer eligible to receive any payments under its collaboration with Bayer with respect to biologic therapeutic candidates. With respect to the Wnt pathway small molecule program, the Company remains eligible to receive up to $17.0 million in development milestone payments for each small molecule candidate as well as contingent consideration payments for each small molecule candidate of up to $15.0 million for the achievement of certain regulatory events and up to $70.0 million upon the achievement of specified future product sales. As all such 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. The Company evaluated the agreement under Topic 606, and determined that the small molecule therapeutic program remaining as of December 31, 2017 is immaterial in the context of the collaboration GSK Strategic Alliance Effective October 28, 2017, GSK terminated its collaboration agreement with the Company in its entirety. As a result of such termination, the Company is no longer eligible to receive any payments under the collaboration agreement with GSK and the Company has no remaining performance obligations. As the GSK collaboration was terminated in its entirety on October 28, 2017, this arrangement is outside the scope of Topic 606 as of the adoption date. |
Stockholder_s Equity
Stockholder’s Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholder’s Equity | 6. Stockholder’s Equity Equity Incentive Plans As of March 31, 2018, a total of 7,336,120 shares of common stock have been authorized under the 2013 Equity Incentive Award Plan (the “2013 Plan”), including the additional 1,500,000 shares of common stock that became available on January 1, 2018 for future issuance under the 2013 Plan as a result of an annual automatic increase provision in the 2013 Plan. As of March 31, 2018, a total of 5,687,670 shares are subject to options and restricted stock units (“RSUs”) outstanding under the 2013 Plan. There are 1,191,572 shares subject to options outstanding under the 2004 Stock Incentive Plan (the “2004 Plan”) as of March 31, 2018, which will become available for issuance under the 2013 Plan to the extent the options are forfeited or lapse unexercised without issuance of such shares under the 2004 Plan. The following table summarizes the Company’s stock option and RSU award activity under the 2004 Plan and 2013 Plan including grants to nonemployees during the three months ended March 31, 2018 (in thousands): Shares Available for Grant Options and of Options and Awards Awards Outstanding Balance at December 31, 2017 606 6,097 Additional shares authorized 1,500 — RSUs awarded (70 ) 70 Options granted (1,438 ) 1,438 Options exercised — — RSUs vested — (26 ) Options forfeited 582 (582 ) RSUs forfeited 118 (118 ) Balance at March 31, 2018 1,298 6,879 The weighted-average grant date estimated fair value of options granted during the three months ended March 31, 2018 was $2.42 per share. Employee Stock Purchase Plan As of March 31, 2018, a total of 1,893,620 shares of common stock have been authorized and 1,534,713 shares of common stock are available for future issuance under the Company’s Employee Stock Purchase Plan (the “ESPP”). This authorized number includes the additional 350,000 shares of common stock that became available for future issuance under the ESPP as of January 1, 2018 as a result of an annual automatic increase provision in the ESPP. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The ESPP provides for six-month offering periods, and at the end of each offering period, employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the last trading day of the offering period. During the three months ended March 31, 2018, the Company issued 21,157 shares under the ESPP. 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 are expected to differ from those estimates. Stock-based compensation expense recognized was as follows (in thousands): Three Months Ended March 31, 2018 2017 Research and development $ 967 $ 1,706 General and administrative 1,311 1,417 Total $ 2,278 $ 3,123 As of March 31, 2018, the Company had $9.3 million, $2.6 million and $26,000 of unrecognized stock-based compensation expense related to stock options, RSUs and ESPP shares, respectively, which are expected to be recognized over an estimated weighted-average period of 3.1 years, 1.0 years and 0.4 years, respectively. Fair Value Disclosures The fair value of stock options granted under the 2013 Plan and purchases under the Company’s ESPP were estimated at grant date using the Black-Scholes option-pricing model. The fair value of stock-based awards was estimated using the following weighted average assumptions for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, Stock Option Plan: 2018 2017 Weighted-average volatility 78.2% 73.8% Weighted-average expected term (years) 6.2 6.2 Risk-free interest rate 2.5% 2.3% Expected dividend yield — — Three Months Ended March 31, ESPP 2018 2017 Weighted-average volatility 88.7% 64.4% Weighted-average expected term (years) 0.5 0.5 Risk-free interest rate 1.4% 0.5% Expected dividend yield — — |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes During the three months ended March 31, 2018 and 2017, the Company recorded an income tax provision of $5,000 and $4,000, respectively, related to discrete items resulting from interest on prior years’ uncertain tax positions. The Company’s deferred tax assets continue to be fully offset by a valuation allowance. In the fourth quarter of 2017, the period in which the Tax Cuts and Jobs Act (“Tax Act”) was enacted, the Company calculated its best estimate of the impact of the Tax Act in accordance with its understanding of the Tax Act. As a result, the Company recorded $1.1 million as income tax benefit in the fourth quarter of 2017 and a corresponding receivable for the expected alternative minimum tax credit refund |
Net Loss per Common Share
Net Loss per Common Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss per Common Share | 8. Net Loss per Common Share The following outstanding common stock equivalents were excluded from the computation of diluted net loss per common share for the periods presented because including them would have been anti-dilutive (in thousands): As of March 31, 2018 2017 Options to purchase common stock 6,073 4,893 RSUs 806 382 6,879 5,275 |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | 9. 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 (anti-DLL4, OMP-21M18) did not meet its primary endpoint and would be discontinued, its Phase II “PINNACLE” clinical trial of tarextumab (anti-Notch2/3, OMP-59R5) did not meet its endpoints, its partner Bayer had decided not to exercise its options to license vantictumab (anti-Fzd, OMP-18R5) and ipafricept (Fzd8-Fc, OMP-54F28), and enrollment would be discontinued in the Phase Ib clinical trial of brontictuzumab (anti-Notch1, OMP-52M51). 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 through March 31, 2018, of which a majority was paid out in cash during the second quarter of 2017. There are no restructuring charges incurred during the three months ended March 31, 2018. The restructuring reserve of $5,000 is included in accrued liabilities on the condensed balance sheet as of March 31, 2018, and is expected to be fully paid by the third quarter of 2018. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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”) for interim reporting. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments that are necessary for a fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or for any subsequent interim period. The condensed balance sheet data as of December 31, 2017 was derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The accompanying condensed financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed with the Securities and Exchange Commission (the “SEC”) on March 9, 2018. There have been no material changes to our significant accounting policies as of and for the three months ended March 31, 2018, except for the policy related to revenue recognition. |
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, but not limited to, those related to revenue recognition, preclinical study and clinical trial accruals, fair value of assets and liabilities, restructuring charges, stock-based compensation and income taxes. 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. |
Revenue Recognition | Revenue Recognition Effective January 1, 2018, the Company adopted Accounting Standards Codification, or ASC, Topic 606, Revenue from Contracts with Customers, using the modified retrospective transition method. Under this method, the Company recorded a cumulative adjustment to the opening balance of accumulated deficit and to deferred revenue. Under Topic 606, the Company recognizes revenue when it transfers control of promised goods or services to its customers in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once a contract is determined to be within the scope of Topic 606, the Company assesses the goods or services promised within the contract and determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company evaluated its existing contracts and only applied Topic 606 to those contracts that were not completed at January 1, 2018. As a result of this evaluation, the Company determined that only its collaboration with Celgene Corporation (“Celgene”) is within the scope of Topic 606. The Company the five-step model Milestone Payments At the inception of each arrangement that includes development, regulatory or commercial milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant reversal of cumulative revenue would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or partner, such as regulatory approvals, are not considered probable of being achieved until those approvals or the underlying activity has been completed |
Customer Concentration | Customer Concentration Customers whose revenue accounted for 10% or more of total revenues were as follows: Three Months Ended March 31, 2018 2017 Bayer Pharma AG ("Bayer") * 13% Celgene 100% 84% * |
Net Loss per Common Share | Net Loss per Common Share Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per common share is computed by dividing the net loss by the weighted-average number of common shares and common share equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, potentially dilutive securities consisting of common stock subject to repurchase, stock options and restricted stock units are considered to be common stock equivalents and were excluded in the calculation of diluted net loss per common share because their effect would be anti-dilutive for all periods presented. |
Newly Adopted and Recent Accounting Pronouncements | Newly Adopted and Recent Accounting Pronouncements Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. In May 2014, the Financial Accounting Standards Board (“FASB”) issued a comprehensive new standard on revenue from contracts with customers, ASU No. 2014-09, Revenue from Contracts with Customers, or Topic 606. The standard’s core principle is that a reporting entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt this new guidance. In 2016, the FASB updated the guidance for reporting revenue gross versus net to improve the implementation guidance on principal versus agent considerations, and for identifying performance obligations and the accounting of intellectual property licenses. In addition, the FASB introduced practical expedients and made narrow scope improvements to the new accounting guidance. Collaboration with Celgene The Company adopted the accounting standard update on January 1, 2018 using the modified retrospective approach, for its collaboration agreement with Celgene. Therefore, comparative historical information will not be adjusted and will continue to be reported under ASC 605 with the impact of the transition reflected in the opening balance of accumulated deficit as of January 1, 2018. The consideration the Company is eligible to receive under this agreement includes upfront payments, milestone payments and program opt-in payments. The new revenue recognition standard differs from ASC 605 in many respects, such as in the accounting for variable consideration and the measurement of progress toward completion of performance obligations. The most significant impact of the standard relates to the Company’s method of revenue recognition for performance obligations that are delivered over time. Under the new standard, milestone payments are included in the transaction price as variable consideration, subject to a constraint, and are allocated to the performance obligations in the contract when recognized. Through December 31, 2017, the Company also received payments from Celgene to reimburse the costs of research and development services performed by the Company; these payments were historically recorded as other revenue. As the performance of these research and development services was at the Company's discretion and are not reflective of a commitment or performance obligation pursuant to the Celgene agreement, the reimbursement paid to the Company has been excluded from the transaction price. The Company’s deferred revenue associated with its Celgene collaboration agreement as of December 31, 2017 under Topic 605 was $143.8 million. As a result of adopting Topic 606, the Company recorded a $98.3 million reduction to its deferred revenue and opening accumulated deficit on January 1, 2018 as a result of the cumulative impact of the change in the recognition of the upfront and milestone payments using the input method (described further in Note 5, “Collaborations” Collaborations with Bayer and GlaxoSmithKline (“GSK”) As the GSK collaboration was terminated in its entirety on October 28, 2017, this arrangement was outside the scope of Topic 606 as of the adoption date. For the Bayer collaboration, Bayer terminated all biologic therapeutic programs under the collaboration effective June 16, 2017, while the small molecule therapeutics program remained active. Refer to Note 5, “Collaborations,” for further details. The Company has determined 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 was 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 has concluded that there was no transition adjustment to be recognized on January 1, 2018 for these two agreements. Impact of Adoption The following table summarizes Balance at December 31, 2017 Adjustment Balance at January 1, 2018 Condensed Balance Sheets: Deferred revenue, current portion $ 82,193 $ (51,299 ) $ 30,894 Deferred revenue, non-current portion 61,645 (47,023 ) 14,622 Accumulated deficit (452,007 ) 98,322 (353,685 ) For the three months ended March 31, 2018 As Reported Adjustment Balances without the adoption of Topic 606 Condensed Statements of Operations: Collaboration revenue 7,849 12,700 20,549 Income (loss) from operations (5,932 ) 12,700 6,768 Net income (loss) (5,574 ) 12,700 7,126 Net income (loss) per common shares, basic and diluted $ (0.15 ) $ 0.33 $ 0.19 Contract Balances Upfront payments and fees may be required to be recorded as deferred revenue upon receipt or when due, and recognized in a future period when or as the Company performs its obligations under these arrangements. Amounts payable to the Company are recorded as accounts receivable when the Company’s right to consideration is unconditional. As of March 31, 2018, the contract liabilities, which consisted of deferred revenue, decreased by a total of $106.1 million from December 31, 2017, of which $98.3 million was related to the cumulative adjustment to the opening balance of accumulated deficit upon the adoption of Topic 606 on January 1, 2018 and $7.8 million related to revenue recognized for the three months ended March 31, 2018. Upon adoption of the standard as of January 1, 2018, ASU No. 2016-02, Leases (Topic 842 ) In February 2016, the FASB issued ASU No. 2016-02, Leases accounting lease |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
ASU 2014-09 [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Impact of Adopting Topic 606 on Select Unaudited Condensed Balance Sheets and Condensed Statement of Operations | Impact of Adoption The following table summarizes Balance at December 31, 2017 Adjustment Balance at January 1, 2018 Condensed Balance Sheets: Deferred revenue, current portion $ 82,193 $ (51,299 ) $ 30,894 Deferred revenue, non-current portion 61,645 (47,023 ) 14,622 Accumulated deficit (452,007 ) 98,322 (353,685 ) For the three months ended March 31, 2018 As Reported Adjustment Balances without the adoption of Topic 606 Condensed Statements of Operations: Collaboration revenue 7,849 12,700 20,549 Income (loss) from operations (5,932 ) 12,700 6,768 Net income (loss) (5,574 ) 12,700 7,126 Net income (loss) per common shares, basic and diluted $ (0.15 ) $ 0.33 $ 0.19 |
Revenue [Member] | Customer Concentration [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Schedule of Customer Concentration of Revenue | Customers whose revenue accounted for 10% or more of total revenues were as follows: Three Months Ended March 31, 2018 2017 Bayer Pharma AG ("Bayer") * 13% Celgene 100% 84% * |
Cash, Cash Equivalents and In18
Cash, Cash Equivalents and Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Fair Value of Securities, Not Including Cash | The fair value of securities at March 31, 2018 and December 31, 2017, were as follows (in thousands): March 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value Money market funds $ 183 $ — $ — $ 183 U.S. treasury bills 74,143 157 (1 ) 74,299 Total available-for-sale securities $ 74,326 $ 157 $ (1 ) $ 74,482 Classified as: Cash equivalents $ 183 Short-term investments 74,299 Total cash equivalents and investments $ 74,482 As of March 31, 2018, the Company had a total of $88.4 million in cash, cash equivalents and short-term investments, which includes $14.1 million in cash and cash equivalents and $74.3 million in short-term investments. 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 available-for-sale securities $ 89,624 $ 289 $ — $ 89,913 Classified as: Cash equivalents $ 99 Short-term investments 89,814 Total $ 89,913 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Company's Financial Assets and Liabilities Subject to Fair Value Measurements on Recurring Basis | The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used in such measurements were as follows (in thousands): March 31, 2018 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 183 $ — $ — $ 183 U.S. treasury bills — 74,299 — 74,299 Total $ 183 $ 74,299 $ — $ 74,482 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 |
Collaborations (Tables)
Collaborations (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Company Recognized Revenues from Collaboration Agreements | The Company has recognized the following revenues from its collaboration agreements during the three months ended March 31, 2018 and 2017 (in thousands): Three Months Ended March 31, 2018 2017 Celgene: Recognition of upfront payments $ 7,849 $ 5,013 Other revenue — 210 Celgene total 7,849 5,223 Bayer: Recognition of upfront payments — 139 Other revenue — 698 Bayer total — 837 GSK: Recognition of upfront payments — 150 Other revenue — 3 GSK total — 153 Total collaboration related revenue $ 7,849 $ 6,213 |
Stockholder_s Equity (Tables)
Stockholder’s Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Summary of Stock Option and RSU Award Activity under 2004 Plan and 2013 Stock Plan | The following table summarizes the Company’s stock option and RSU award activity under the 2004 Plan and 2013 Plan including grants to nonemployees during the three months ended March 31, 2018 (in thousands): Shares Available for Grant Options and of Options and Awards Awards Outstanding Balance at December 31, 2017 606 6,097 Additional shares authorized 1,500 — RSUs awarded (70 ) 70 Options granted (1,438 ) 1,438 Options exercised — — RSUs vested — (26 ) Options forfeited 582 (582 ) RSUs forfeited 118 (118 ) Balance at March 31, 2018 1,298 6,879 |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense recognized was as follows (in thousands): Three Months Ended March 31, 2018 2017 Research and development $ 967 $ 1,706 General and administrative 1,311 1,417 Total $ 2,278 $ 3,123 |
Schedule of Weighted Average Assumptions Used under Black-Scholes Option-Pricing Model to Estimate Fair Value of Stock Options Granted Under 2013 Plan | The fair value of stock-based awards was estimated using the following weighted average assumptions for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, Stock Option Plan: 2018 2017 Weighted-average volatility 78.2% 73.8% Weighted-average expected term (years) 6.2 6.2 Risk-free interest rate 2.5% 2.3% Expected dividend yield — — |
Schedule of Weighted Average Assumptions Used under Black-Scholes Option-Pricing Model to Estimate Fair Value of Company's ESPP at Grant Date | Three Months Ended March 31, ESPP 2018 2017 Weighted-average volatility 88.7% 64.4% Weighted-average expected term (years) 0.5 0.5 Risk-free interest rate 1.4% 0.5% Expected dividend yield — — |
Net Loss per Common Share (Tabl
Net Loss per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 anti-dilutive (in thousands): As of March 31, 2018 2017 Options to purchase common stock 6,073 4,893 RSUs 806 382 6,879 5,275 |
Organization - Additional Infor
Organization - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of operating segment | 1 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Summary Of Significant Accounting Policies [Line Items] | ||||
Decrease in deferred revenue | $ 7,849 | $ 5,331 | ||
Collaboration revenue | 7,849 | 5,302 | ||
Revenue recognized from contract liability | 7,800 | |||
Contract liability | 37,700 | |||
ASU 2014-09 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Decrease in accumulated deficit | $ 98,300 | |||
Decrease in contract liabilities | 106,100 | |||
ASU 2014-09 [Member] | Adjustment [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Decrease in accumulated deficit | 98,300 | |||
Decrease in deferred revenue | 98,300 | |||
Contract liability | 45,500 | |||
Collaborative Arrangement [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Collaboration revenue | 7,849 | 6,213 | ||
Celgene [Member] | Collaborative Arrangement [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Deferred revenue | $ 143,800 | |||
Collaboration revenue | $ 7,849 | $ 5,223 | ||
Celgene [Member] | Collaborative Arrangement [Member] | Topic 605 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Deferred revenue | 143,800 | |||
Celgene [Member] | Collaborative Arrangement [Member] | ASU 2014-09 [Member] | Adjustment [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Deferred revenue | 45,500 | |||
Decrease in accumulated deficit | 98,300 | |||
Collaboration revenue | $ 186,200 | $ 186,200 | ||
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 | 100.00% | 84.00% | ||
Minimum [Member] | Revenue [Member] | Customer Concentration [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk percentage of revenue represented by major customers | 10.00% |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Schedule of Customer Concentration of Revenue (Detail) - Revenue [Member] - Customer Concentration [Member] - Collaborative Arrangement [Member] | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Bayer [Member] | ||
Concentration Risk [Line Items] | ||
Collaborative research and development revenue, Percentage | 13.00% | |
Celgene [Member] | ||
Concentration Risk [Line Items] | ||
Collaborative research and development revenue, Percentage | 100.00% | 84.00% |
Summary of Significant Accoun26
Summary of Significant Accounting Policies - Schedule of Customer Concentration of Revenue (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Minimum [Member] | Revenue [Member] | Customer Concentration [Member] | |
Concentration Risk [Line Items] | |
Concentration risk percentage of revenue represented by major customers | 10.00% |
Summary of Significant Accoun27
Summary of Significant Accounting Policies - Impact of Adopting Topic 606 on Select Unaudited Condensed Balance Sheets and Condensed Statement of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Condensed Balance Sheets: | ||||
Deferred revenue, current portion | $ 27,919 | $ 82,193 | ||
Deferred revenue, non-current portion | 9,748 | 61,645 | ||
Accumulated deficit | (359,259) | $ (452,007) | ||
Condensed Statements of Operations: | ||||
Collaboration revenue | 7,849 | |||
Income (loss) from operations | (5,932) | $ (22,758) | ||
Net income (loss) | $ (5,574) | $ (22,608) | ||
Net income (loss) per common shares, basic and diluted | $ (0.15) | $ (0.61) | ||
ASU 2014-09 [Member] | ||||
Condensed Balance Sheets: | ||||
Deferred revenue, current portion | $ 30,894 | |||
Deferred revenue, non-current portion | 14,622 | |||
Accumulated deficit | (353,685) | |||
ASU 2014-09 [Member] | Adjustment [Member] | ||||
Condensed Balance Sheets: | ||||
Deferred revenue, current portion | (51,299) | |||
Deferred revenue, non-current portion | (47,023) | |||
Accumulated deficit | $ 98,322 | |||
Condensed Statements of Operations: | ||||
Collaboration revenue | $ 12,700 | |||
Income (loss) from operations | 12,700 | |||
Net income (loss) | $ 12,700 | |||
Net income (loss) per common shares, basic and diluted | $ 0.33 | |||
ASU 2014-09 [Member] | Balances without the adoption of Topic 606 [Member] | ||||
Condensed Statements of Operations: | ||||
Collaboration revenue | $ 20,549 | |||
Income (loss) from operations | 6,768 | |||
Net income (loss) | $ 7,126 | |||
Net income (loss) per common shares, basic and diluted | $ 0.19 |
Cash, Cash Equivalents and In28
Cash, Cash Equivalents and Investments - Schedule of Fair Value of Securities, Not Including Cash (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 74,326 | $ 89,624 |
Gross Unrealized Gains | 157 | 289 |
Gross Unrealized Losses | (1) | |
Fair Value | 74,482 | 89,913 |
Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 183 | 99 |
Fair Value | 183 | 99 |
U.S. Treasury Bills [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 74,143 | 89,525 |
Gross Unrealized Gains | 157 | 289 |
Gross Unrealized Losses | (1) | |
Fair Value | 74,299 | 89,814 |
Cash and Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 183 | 99 |
Short-Term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 74,299 | $ 89,814 |
Cash, Cash Equivalents and In29
Cash, Cash Equivalents and Investments - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Total cash, cash equivalents, and short-term investments | $ 88,400,000 | $ 103,100,000 | ||
Cash and cash equivalents | 14,125,000 | 13,277,000 | $ 39,195,000 | $ 36,953,000 |
Short-term investments | 74,299,000 | 89,814,000 | ||
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 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Assets fair value disclosure | $ 74,482 | $ 89,913 |
Level 1 [Member] | ||
Assets: | ||
Assets fair value disclosure | 183 | 99 |
Level 2 [Member] | ||
Assets: | ||
Assets fair value disclosure | 74,299 | 89,814 |
Money Market Funds [Member] | ||
Assets: | ||
Assets fair value disclosure | 183 | 99 |
Money Market Funds [Member] | Level 1 [Member] | ||
Assets: | ||
Assets fair value disclosure | 183 | 99 |
U.S. Treasury Bills [Member] | ||
Assets: | ||
Assets fair value disclosure | 74,299 | 89,814 |
U.S. Treasury Bills [Member] | Level 2 [Member] | ||
Assets: | ||
Assets fair value disclosure | $ 74,299 | $ 89,814 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Mar. 31, 2018USD ($) |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 |
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | $ 0 |
Collaborations - Company Recogn
Collaborations - Company Recognized Revenues from Collaboration Agreements (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | $ 7,849 | $ 5,302 |
Collaborative Arrangement [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | 7,849 | 6,213 |
Collaborative Arrangement [Member] | Celgene [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | 7,849 | 5,223 |
Collaborative Arrangement [Member] | Celgene [Member] | Recognition of Upfront Payments [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | $ 7,849 | 5,013 |
Collaborative Arrangement [Member] | Celgene [Member] | Other Revenue [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | 210 | |
Collaborative Arrangement [Member] | GlaxoSmithKline [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | 153 | |
Collaborative Arrangement [Member] | GlaxoSmithKline [Member] | Recognition of Upfront Payments [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | 150 | |
Collaborative Arrangement [Member] | GlaxoSmithKline [Member] | Other Revenue [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | 3 | |
Collaborative Arrangement [Member] | Bayer [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | 837 | |
Collaborative Arrangement [Member] | Bayer [Member] | Recognition of Upfront Payments [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | 139 | |
Collaborative Arrangement [Member] | Bayer [Member] | Other Revenue [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | $ 698 |
Collaborations - Celgene Strate
Collaborations - Celgene Strategic Alliance - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2013 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2014 |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Collaboration revenue | $ 7,849 | $ 5,302 | |||||
ASU 2014-09 [Member] | |||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Decrease in accumulated deficit | $ 98,300 | ||||||
Topic 606 [Member] | ASU 2014-09 [Member] | |||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Decrease in accumulated deficit | 98,300 | ||||||
Collaborative Arrangement [Member] | |||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Percentage of sharing development cost | 33.33% | ||||||
Profits and losses sharing percentage | 50.00% | ||||||
Collaboration revenue | $ 7,849 | 6,213 | |||||
Celgene [Member] | Collaborative Arrangement [Member] | |||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Additional contingent consideration for regulatory events | $ 1,290,000 | ||||||
Percentage of sharing development cost | 66.66% | ||||||
Profits and losses sharing percentage | 50.00% | ||||||
Non-refundable upfront cash payment received | $ 155,000 | ||||||
Premium on closing price of common stock value | $ 1,700 | ||||||
Deferred revenue | $ 143,800 | ||||||
Payment receivable under agreement | $ 2,500 | $ 2,500 | |||||
Reimbursement of research and development services costs | 2,500 | ||||||
Collaboration revenue | $ 7,849 | $ 5,223 | |||||
Celgene [Member] | Collaborative Arrangement [Member] | Topic 606 [Member] | ASU 2014-09 [Member] | |||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Deferred revenue | 45,500 | ||||||
Total consideration | 231,700 | ||||||
Collaboration revenue | 186,200 | $ 186,200 | |||||
Decrease in accumulated deficit | $ 98,300 | ||||||
Celgene [Member] | Collaborative Arrangement [Member] | Navicixizumab Program, Rosmantuzumab Program and AntiTIGIT Program [Member] | |||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Future development milestone payments | $ 97,800 | ||||||
Celgene [Member] | Collaborative Arrangement [Member] | Demcizumab [Member] | |||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Deferred revenue | $ 70,000 |
Collaborations - Bayer Strategi
Collaborations - Bayer Strategic Alliance - Additional Information (Detail) - Bayer [Member] - Collaborative Arrangement [Member] - Small Molecules [Member] $ in Millions | Jun. 16, 2017USD ($) |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Future development milestone payments | $ 17 |
Contingent consideration payments for regulatory events | 15 |
Achievement of Specified Future Product Sales [Member] | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Contingent consideration payments for regulatory events | $ 70 |
Collaborations - GSK Strategic
Collaborations - GSK Strategic Alliance - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Collaborative Arrangement [Member] | GlaxoSmithKline [Member] | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Effective date of termination | Oct. 28, 2017 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock subject to options outstanding | 6,879,000 | 6,097,000 | |
Weighted-average grant-date fair value, granted | $ 2.42 | ||
Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized stock-based compensation expense | $ 9.3 | ||
Estimated weighted-average period | 3 years 1 month 6 days | ||
Restricted Stock Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized stock-based compensation expense | $ 2.6 | ||
Estimated weighted-average period | 1 year | ||
Employees Stock Purchase Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock shares authorized | 1,893,620 | ||
Common stock available for future issuance under plan | 1,534,713 | 350,000 | |
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 | 21,157 | ||
Unrecognized stock-based compensation expense | $ 26,000 | ||
Estimated weighted-average period | 4 months 24 days | ||
2013 Equity Incentive Award Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock shares authorized | 7,336,120 | ||
Common stock available for future issuance under plan | 1,500,000 | ||
Common stock subject to options and restricted stock units outstanding | 5,687,670 | ||
2004 Stock Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock subject to options outstanding | 1,191,572 |
Stockholder's Equity - Summary
Stockholder's Equity - Summary of Stock Option and RSU Award Activity under 2004 Plan and 2013 Stock Plan (Detail) | 3 Months Ended |
Mar. 31, 2018shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares Available for Grant, Beginning Balance | 606,000 |
Shares Available for Grant, Additional Options authorized | 1,500,000 |
Shares Available for Grant, Options granted | (1,438,000) |
Shares Available for Grant, Options exercised | 0 |
Shares Available for Grant, Options forfeited | 582,000 |
Shares Available for Grant, Ending Balance | 1,298,000 |
Options Outstanding, Beginning Balance | 6,097,000 |
Options and Awards Outstanding, Additional Options authorized | 0 |
Options Outstanding, Options granted | 1,438,000 |
Options Outstanding, Options exercised | 0 |
Options Outstanding, Options forfeited | (582,000) |
Options Outstanding, Ending Balance | 6,879,000 |
Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares Available for Grant of Options and Awards, RSUs awarded | (70,000) |
Shares Available for Grant of Options and Awards, RSU vested | 0 |
Shares Available for Grant of Options and Awards, RSUs forfeited | 118,000 |
Options and Awards Outstanding, RSUs awarded | 70,000 |
Options and Awards Outstanding, RSU vested | (26,000) |
Options and Awards Outstanding, RSUs forfeited | (118,000) |
Stockholder's Equity - Schedule
Stockholder's Equity - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 2,278 | $ 3,123 |
Research and Development [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 967 | 1,706 |
General and Administrative [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 1,311 | $ 1,417 |
Stockholder's Equity - Schedu39
Stockholder's Equity - Schedule of Weighted Average Assumptions Used under Black-Scholes Option-Pricing Model to Estimate Fair Value of Stock Options Granted Under 2013 Plan (Detail) - Stock Options [Member] | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted-average volatility | 78.20% | 73.80% |
Weighted-average expected term (years) | 6 years 2 months 12 days | 6 years 2 months 12 days |
Risk-free interest rate | 2.50% | 2.30% |
Expected dividend yield |
Stockholder's Equity - Schedu40
Stockholder's Equity - Schedule of Weighted Average Assumptions Used under Black-Scholes Option-Pricing Model to Estimate Fair Value of Company's ESPP at Grant Date (Detail) - Employees Stock Purchase Plan [Member] | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted-average volatility | 88.70% | 64.40% |
Weighted-average expected term (years) | 6 months | 6 months |
Risk-free interest rate | 1.40% | 0.50% |
Expected dividend yield |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision (benefit) | $ 5 | $ 4 | |
Income tax benefit | $ (1,100) | ||
Reduction in deferred tax assets | $ 51,700 |
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 | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Outstanding shares of common stock equivalents | 6,879 | 5,275 |
Options to purchase common stock [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Outstanding shares of common stock equivalents | 6,073 | 4,893 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Outstanding shares of common stock equivalents | 806 | 382 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) | 3 Months Ended | 11 Months Ended |
Mar. 31, 2018USD ($) | Mar. 31, 2018USD ($) | |
Restructuring And Related Activities [Abstract] | ||
Restructuring plan, description | 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 through March 31, 2018, of which a majority was paid out in cash during the second quarter of 2017. There are no restructuring charges incurred during the three months ended March 31, 2018. The restructuring reserve of $5,000 is included in accrued liabilities on the condensed balance sheet as of March 31, 2018, and is expected to be fully paid by the third quarter of 2018 | |
Restructuring charges | $ 0 | $ 2,500,000 |
Restructuring reserve | $ 5,000 | $ 5,000 |