Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | EyePoint Pharmaceuticals, Inc. | |
Entity Central Index Key | 0001314102 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | EYPT | |
Entity Common Stock, Shares Outstanding | 34,301,926 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity File Number | 000-51122 | |
Entity Tax Identification Number | 26-2774444 | |
Entity Address, Address Line One | 480 Pleasant Street | |
Entity Address, City or Town | Watertown | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02472 | |
City Area Code | (617) | |
Local Phone Number | 926-5000 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE | |
Title of 12(b) Security | Common Stock, par value $0.001 | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 105,765 | $ 95,633 |
Marketable securities | 16,718 | 48,928 |
Accounts and other receivables, net | 10,422 | 15,503 |
Prepaid expenses and other current assets | 9,081 | 9,858 |
Inventory | 4,071 | 2,886 |
Total current assets | 146,057 | 172,808 |
Property and equipment, net | 2,609 | 1,360 |
Operating lease right-of-use assets | 5,777 | 6,038 |
Restricted cash | 150 | 150 |
Total assets | 154,593 | 180,356 |
Current liabilities: | ||
Accounts payable | 9,453 | 5,919 |
Accrued expenses | 10,485 | 16,359 |
Deferred revenue | 1,237 | 1,205 |
Short-term borrowings | 5,295 | 10,475 |
Other current liabilities | 772 | 579 |
Total current liabilities | 27,242 | 34,537 |
Long-term debt | 29,370 | 29,310 |
Deferred revenue - noncurrent | 13,270 | 13,557 |
Operating lease liabilities - noncurrent | 5,721 | 5,984 |
Other long-term liabilities | 600 | 600 |
Total liabilities | 76,203 | 83,988 |
Contingencies (Note 13) | ||
Stockholders' equity: | ||
Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $.001 par value, 300,000,000 shares authorized at March 31, 2023 and December 31, 2022; 34,301,926 and 34,082,934 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 34 | 34 |
Additional paid-in capital | 770,028 | 766,899 |
Accumulated deficit | (692,515) | (671,351) |
Accumulated other comprehensive income | 843 | 786 |
Total stockholders' equity | 78,390 | 96,368 |
Total liabilities and stockholders' equity | $ 154,593 | $ 180,356 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
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 | 300,000,000 | 300,000,000 |
Common stock, shares issued | 34,301,926 | 34,082,934 |
Common stock, shares outstanding | 34,301,926 | 34,082,934 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Total revenues | $ 7,683 | $ 9,294 |
Operating expenses: | ||
Cost of sales, excluding amortization of acquired intangible assets | 640 | 1,777 |
Research and development | 13,618 | 9,945 |
Sales and marketing | 5,737 | 6,693 |
General and administrative | 9,242 | 8,548 |
Amortization of acquired intangible assets | 0 | 615 |
Total operating expenses | 29,237 | 27,578 |
Loss from operations | (21,554) | (18,284) |
Other income (expense): | ||
Interest and other income, net | 1,202 | 61 |
Interest expense | (812) | (1,194) |
Loss on extinguishment of debt | 0 | (1,559) |
Total other income (expense), net | 390 | (2,692) |
Net loss | $ (21,164) | $ (20,976) |
Net loss per share - basic | $ (0.56) | $ (0.56) |
Net loss per share - diluted | $ (0.56) | $ (0.56) |
Weighted average shares outstanding - basic | 37,486 | 37,253 |
Weighted average shares outstanding - diluted | 37,486 | 37,253 |
Net loss | $ (21,164) | $ (20,976) |
Other comprehensive loss: | ||
Unrealized gain (loss) on available-for-sale securities, net of tax of $0 for periods presented | 57 | (53) |
Comprehensive loss | (21,107) | (21,029) |
Product [Member] | ||
Revenues: | ||
Total revenues | 7,394 | 9,010 |
License and Collaboration Agreements [Member] | ||
Revenues: | ||
Total revenues | 34 | 59 |
Royalty Income [Member] | ||
Revenues: | ||
Total revenues | $ 255 | $ 225 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Unrealized gain (loss) on available-for-sale securities, tax | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] |
Balance at Dec. 31, 2021 | $ 184,380 | $ 34 | $ 752,602 | $ (569,097) | $ 841 |
Balance, shares at Dec. 31, 2021 | 33,905,826 | ||||
Net loss | (20,976) | (20,976) | |||
Other comprehensive gain (loss) | (53) | (53) | |||
Employee stock purchase plan | 201 | 201 | |||
Employee stock purchase plan, shares | 28,504 | ||||
Exercise of stock options | 40 | 40 | |||
Exercise of stock options, shares | 4,223 | ||||
Vesting of stock units | (250) | (250) | |||
Vesting of stock units, shares | 108,575 | ||||
Stock-based compensation | 3,477 | 3,477 | |||
Balance at Mar. 31, 2022 | 166,819 | $ 34 | 756,070 | (590,073) | 788 |
Balance, shares at Mar. 31, 2022 | 34,047,128 | ||||
Balance at Dec. 31, 2022 | $ 96,368 | $ 34 | 766,899 | (671,351) | 786 |
Balance, shares at Dec. 31, 2022 | 34,082,934 | 34,082,934 | |||
Net loss | $ (21,164) | (21,164) | |||
Other comprehensive gain (loss) | 57 | 57 | |||
Employee stock purchase plan | 248 | 248 | |||
Employee stock purchase plan, shares | 63,721 | ||||
Vesting of stock units | (169) | (169) | |||
Vesting of stock units, shares | 155,271 | ||||
Stock-based compensation | 3,050 | 3,050 | |||
Balance at Mar. 31, 2023 | $ 78,390 | $ 34 | $ 770,028 | $ (692,515) | $ 843 |
Balance, shares at Mar. 31, 2023 | 34,301,926 | 34,301,926 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (21,164) | $ (20,976) |
Adjustments to reconcile net loss to cash flows used in operating activities: | ||
Amortization of intangible assets | 0 | 615 |
Depreciation of property and equipment | 105 | 81 |
Amortization of debt discount and premium and discount on available-for-sale marketable securities | (244) | 110 |
Loss on extinguishment of debt | 0 | 1,559 |
Stock-based compensation | 3,050 | 3,477 |
Changes in operating assets and liabilities: | ||
Accounts receivable and other current assets | 4,932 | (2,937) |
Inventory | (1,185) | 280 |
Accounts payable and accrued expenses | (2,267) | (2,107) |
Right-of-use assets and operating lease liabilities | 193 | (35) |
Deferred revenue | (255) | (225) |
Net cash used in operating activities | (16,835) | (20,158) |
Cash flows from investing activities: | ||
Purchases of marketable securities | (2,930) | (62,293) |
Sales and maturities of marketable securities | 35,500 | 6,000 |
Purchases of property and equipment | (484) | (149) |
Net cash provided by (used in) investing activities | 32,086 | (56,442) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 0 | 30,000 |
Payment of equity and debt issue costs | 0 | (352) |
Payment of long-term debt | 0 | (38,235) |
Payment of extinguishment of debt costs | 0 | (2,294) |
Borrowings under revolving facility | 5,300 | 11,459 |
Repayment under revolving facility | (10,480) | (984) |
Net settlement of stock units to satisfy statutory tax withholding | (169) | (250) |
Proceeds from exercise of stock options | 248 | 241 |
Principal payments on finance lease obligations | (18) | (33) |
Net cash used in financing activities | (5,119) | (448) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 10,132 | (77,048) |
Cash, cash equivalents and restricted cash at beginning of period | 95,783 | 178,743 |
Cash, cash equivalents and restricted cash at end of period | 105,915 | 101,695 |
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets: | ||
Cash and cash equivalents | 105,765 | 101,545 |
Restricted cash | 150 | 150 |
Total cash, cash equivalents and restricted cash at end of period | 105,915 | 101,695 |
Supplemental cash flow information: | ||
Cash interest paid | 740 | 941 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Debt issue costs | 0 | 244 |
Accrued term loan exit fee | $ 0 | $ 600 |
Operations
Operations | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations | 1. Operations The accompanying condensed consolidated financial statements of EyePoint Pharmaceuticals, Inc., a Delaware corporation (together with its subsidiaries, the Company), as of March 31, 2023 and for the three months ended March 31, 2023 and 2022 are unaudited. Certain information in the footnote disclosures of these financial statements has been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, these statements have been prepared on the same basis as the audited consolidated financial statements as of and for the year ended December 31, 2022, and include all adjustments, consisting only of normal recurring adjustments, that are necessary for the fair presentation of the Company’s financial position, results of operations, comprehensive loss and cash flows for the periods indicated. The preparation of financial statements in accordance with United States (U.S.) generally accepted accounting principles requires management to make assumptions and estimates that affect, among other things, (i) reported amounts of assets and liabilities; (ii) disclosure of contingent assets and liabilities at the date of the consolidated financial statements; and (iii) reported amounts of revenues and expenses during the reporting period. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the entire fiscal year or any future period. The Company is committed to developing and commercializing therapeutics to help improve the lives of patients with serious eye disorders. The Company’s pipeline leverages its proprietary erodible DURASERT E technology (Durasert E) for sustained intraocular drug delivery including EYP-1901, an investigational sustained delivery intravitreal treatment currently in Phase 2 clinical trials for wet age-related macular degeneration (wet AMD), the leading cause of vision loss among people 50 years of age and older in the United States and non-proliferative diabetic retinopathy (NPDR), a largely untreated disease due to limitations of available therapies. The Company also commercializes YUTIQ ® , a once every three-year treatment for chronic non-infectious uveitis affecting the posterior segment of the eye that utilizes a non-erodible formulation of Durasert. YUTIQ is currently being sold in the United States and the Company has focused on its use with both uveitis and retinal specialist physicians. DEXYCU ® , a single-dose treatment for postoperative inflammation following ocular surgery, is also being sold in the United States, but no longer actively marketed in the United States due to loss of pass-through reimbursement by the Center for Medicare & Medicaid Services (CMS) as of January 1, 2023. The Company plans to identify and advance additional pipeline product candidates through clinical and regulatory development. This may be accomplished through internal discovery efforts, research collaborations and/or in-licensing arrangements with partner molecules and potential acquisitions of additional ophthalmic products, product candidates or technologies that complement the Company’s current product portfolio. Effects of the COVID-19 Coronavirus Pandemic The ongoing COVID-19 coronavirus pandemic (the Pandemic) has had a material and adverse impact on the Company’s business pursuant to a reduction in physician office visits impacting YUTIQ. Going forward, the duration and full extent to which the Pandemic impacts the Company’s business, revenues, financial condition and cash flows depend on future developments that are highly uncertain, subject to change and are difficult to predict, including new information that may emerge concerning the Pandemic, and may cause intermittent or prolonged periods of reduced patient services at the Company’s customers’ facilities, which may negatively affect customer demand. The Company’s revenues, financial condition and cash flows may be adversely affected in the future as well. The Company is continuously monitoring the Pandemic and its potential effect on the Company’s financial position, results of operations and cash flows. Although the U.S. government has announced the termination of the public health emergency associated with the Pandemic as of May 2023, there remains an uncertainty about the potential future impact of the Pandemic on the Company’s business. This uncertainty could have an impact in future periods on certain estimates used in the preparation of the Company’s periodic financial results, including reserves for variable consideration related to product sales, realizability of certain receivables and assessment for excess or obsolete inventory. Uncertainty around the extent and length of time of the Pandemic, and any future related financial impact cannot be reasonably estimated at this time. Liquidity The Company had cash, cash equivalents and investments in marketable securities of $ 122.5 million at March 31, 2023. The Company has a history of operating losses and has not had significant recurring cash inflows from revenue. The Company’s operations have been financed primarily from sales of its equity securities, issuance of debt and a combination of license fees, milestone payments, royalty income and other fees received from its collaboration partners. The Company anticipates that it will continue to incur losses as it continues the research and development of its product candidates, and the Company does not expect revenues from its product sales to generate sufficient funding to sustain its operations in the near-term. The Company expects to continue fulfilling its funding needs through cash inflows from revenues of its product sales, licensing and research collaboration transactions, additional equity capital raises and other arrangements. The Company believes that its cash, cash equivalents and investments in marketable securities of $ 122.5 million at March 31, 2023 coupled with expected net cash inflows from its product sales will enable the Company to fund its current and planned operations for at least the next twelve months from the date these consolidated financial statements were issued. Actual cash requirements could differ from management’s projections due to many factors, including the uncertainty and potential effect of the Pandemic on the Company’s business and the medical community, the timing and results of the Company’s clinical trials for EYP-1901, additional investments in research and development programs, the success of ongoing commercialization efforts for YUTIQ, the actual costs of these ongoing commercialization efforts, competing technological and market developments and the costs of any strategic acquisitions and/or development of complementary business opportunities. Recently Adopted and Recently Issued Accounting Pronouncements New accounting pronouncements are issued periodically by the Financial Accounting Standards Board and are adopted by the Company as of the specified effective dates. The Company believes that recently issued and adopted pronouncements will not have a material impact on the Company’s financial position, results of operations and cash flows or do not apply to the Company’s operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Revenue Recognition Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, Revenue from Contracts with Customers (ASC 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 entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within the contract, 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. Sales, value-add and other taxes collected on behalf of third parties are excluded from revenue. Product sales, net — The Company sells YUTIQ and DEXYCU to a limited number of specialty distributors and specialty pharmacies (collectively the Distributors) in the U.S., with whom the Company has entered into formal agreements, for delivery to physician practices for YUTIQ and to hospital outpatient departments and ambulatory surgical centers (ASCs) for DEXYCU. The Company recognizes revenue on sales of its products when Distributors obtain control of the products, which occurs at a point in time, typically upon delivery. In addition to agreements with Distributors, the Company also enters into arrangements with healthcare providers, ASCs and payors that provide for government mandated and/or privately negotiated rebates, chargebacks and discounts with respect to the purchase of the Company’s products from Distributors. Reserves for variable consideration — Product sales are recorded at the wholesale acquisition costs, net of applicable reserves for variable consideration. Components of variable consideration include trade discounts and allowances, provider chargebacks and discounts, payor rebates, product returns and other allowances that are offered within contracts between the Company and its Distributors, payors and other contracted purchasers relating to the Company’s product sales. These reserves, as detailed below, are based on the amounts earned, or to be claimed on the related sales, and are classified either as reductions of product revenue and accounts receivable or a current liability, depending on how the amount is to be settled. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the respective underlying contracts. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the estimates, the Company adjusts product revenue and earnings in the period such variances become known. Distribution fees — The Company compensates its Distributors for services explicitly stated in the Company’s contracts and are recorded as a reduction of revenue in the period the related product sale is recognized. Provider chargebacks and discounts — Chargebacks are discounts that represent the estimated obligations resulting from contractual commitments to sell products at prices lower than the list prices charged to the Company’s Distributors. These Distributors charge the Company for the difference between what they pay for the product and the Company’s contracted selling price. These reserves are established in the same period that the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability. Reserves for chargebacks consist of amounts that the Company expects to pay for units that remain in the distribution channel inventories at each reporting period-end that the Company expects will be sold under a contracted selling price, and chargebacks that Distributors have claimed, but for which the Company has not yet settled. Government rebates — The Company is subject to discount obligations under state Medicaid programs and Medicare. These reserves are recorded in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability which is included in accrued expenses and other current liabilities on the condensed consolidated balance sheets. The Company’s liability for these rebates consists of invoices received for claims from prior quarters that have not been paid or for which an invoice has not yet been received, estimates of claims for the current quarter, and estimated future claims that will be made for product that has been recognized as revenue, but which remains in the distribution channel inventories at the end of each reporting period. Payor rebates — The Company contracts with certain private payor organizations, primarily insurance companies, for the payment of rebates with respect to utilization of its products. The Company estimates these rebates and records such estimates in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability. Co-Payment assistance — The Company offers co-payment assistance to commercially insured patients meeting certain eligibility requirements. The calculation of the accrual for co-pay assistance is based on an estimate of claims and the cost per claim that the Company expects to receive associated with product that has been recognized as revenue. Product returns — The Company generally offers a limited right of return based on its returned goods policy, which includes damaged product and remaining shelf life. The Company estimates the amount of its product sales that may be returned and records this estimate as a reduction of revenue in the period the related product revenue is recognized, as well as reductions to trade receivables, net on the condensed consolidated balance sheets. License and collaboration agreement revenue — The Company analyzes each element of its license and collaboration arrangements to determine the appropriate revenue recognition. The terms of the license agreement may include payment to the Company of non-refundable upfront license fees, milestone payments if specified objectives are achieved, and/or royalties on product sales. The Company recognizes revenue from upfront payments at a point in time, typically upon fulfilling the delivery of the associated intellectual property to the customer. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. The Company recognizes sales-based milestone payments as revenue upon the achievement of the cumulative sales amount specified in the contract in accordance with ASC 606-10-55-65. For those milestone payments which are contingent on the occurrence of particular future events, the Company determines that these need to be considered for inclusion in the calculation of total consideration from the contract as a component of variable consideration using the most-likely amount method. As such, the Company assesses each milestone to determine the probability and substance behind achieving each milestone. Given the inherent uncertainty associated with these future events, the Company will not recognize revenue from such milestones until there is a high probability of occurrence, which typically occurs near or upon achievement of the event. When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in paragraph 606-10-32-18, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. None of the Company’s contracts contained a significant financing component as of March 31, 2023. Royalties — The Company recognizes revenue from license arrangements with its commercial partners’ net sales of products. Such revenues are included as royalty income. In accordance with ASC 606-10-55-65, royalties are recognized when the subsequent sale of the commercial partner’s products occurs. The Company’s commercial partners are obligated to report their net product sales and the resulting royalty due to the Company typically within 60-days from the end of each quarter. Based on historical product sales, royalty receipts and other relevant information, the Company recognizes royalty income each quarter and subsequently determines a true-up when it receives royalty reports and payment from its commercial partners. Historically, these true-up adjustments have been immaterial. Sale of Future Royalties — The Company has sold its rights to receive certain royalties on product sales. In the circumstance where the Company has sold its rights to future royalties under a royalty purchase agreement (RPA) and also maintains limited continuing involvement in the arrangement (but not significant continuing involvement in the generation of the cash flows that are due to the purchaser), the Company defers recognition of the proceeds it receives for the sale of royalty streams and recognizes such unearned revenue as revenue under the units-of-revenue method over the life of the underlying license agreement. Under the units-of-revenue method, amortization for a reporting period is calculated by computing a ratio of the proceeds received from the purchaser to the total payments expected to be made to the purchaser over the term of the agreement, and then applying that ratio to the period’s cash payment. Estimating the total payments expected to be received by the purchaser over the term of such arrangements requires management to use subjective estimates and assumptions. Changes to the Company’s estimate of the payments expected to be made to the purchaser over the term of such arrangements could have a material effect on the amount of revenues recognized in any particular period. Research Collaborations — The Company recognizes revenue over the term of the statements of work under any funded research collaborations. Revenue recognition for consideration, if any, related to a license option right is assessed based on the terms of any such future license agreement or is otherwise recognized at the completion of the research collaborations. Please refer to Note 3 for further details on the license and collaboration agreements into which the Company has entered and corresponding amounts of revenue recognized during the current and prior year periods. Cost of sales, excluding amortization of acquired intangible assets — Cost of sales, excluding amortization of acquired intangible assets, consist of costs associated with the manufacture of YUTIQ and DEXYCU, certain period costs for DEXYCU product revenue, product shipping and, as applicable, royalty expense. The inventory costs for YUTIQ include purchases of various components, the active pharmaceutical ingredient (API) and direct labor and overhead for the product manufactured in the Company’s Watertown, Massachusetts facility. The inventory costs for DEXYCU include purchased components, the API and third-party manufacturing and assembly. For the three months ended March 31, 2023 and 2022, the Company accrued DEXYCU product revenue-based royalty expense of $ 1,000 and $ 674,000 , respectively, as a component of cost of sales. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 3. Revenue Product Revenue Reserves and Allowances As of March 31, 2023, the Company’s product revenues have been primarily from sales of YUTIQ in the U.S. (See Note 1). The following table summarizes activity in each of the product revenue allowance and reserve categories for the three months ended March 31, 2023 and 2022 (in thousands): Chargebacks, Government and Fees Rebates Returns Total Beginning balance at January 1, 2023 $ 859 $ 158 $ 871 $ 1,888 Provision related to sales in the current year 823 — — 823 Adjustments related to prior period sales 40 ( 40 ) ( 18 ) ( 18 ) Deductions applied and payments made ( 846 ) ( 103 ) ( 32 ) ( 981 ) Ending balance at March 31, 2023 $ 876 $ 15 $ 821 $ 1,712 Chargebacks, Government and Fees Rebates Returns Total Beginning balance at January 1, 2022 $ 1,153 $ 1,821 $ 379 $ 3,353 Provision related to sales in the current year 2,674 2,003 140 4,817 Adjustments related to prior period sales — — — — Deductions applied and payments made ( 1,904 ) ( 1,693 ) ( 87 ) ( 3,684 ) Ending balance at March 31, 2022 $ 1,923 $ 2,131 $ 432 $ 4,486 Returns are recorded as a reduction of accounts receivable on the condensed consolidated balance sheets. Chargebacks, discounts and fees and rebates are recorded as a component of accrued expenses on the condensed consolidated balance sheets (See Note 6). License and Collaboration Agreements and Royalty Income SWK Royalty Purchase Agreement Pursuant to a royalty purchase agreement (RPA) with SWK Funding LLC (SWK), the Company sold its right to receive royalty payments on future sales of products subject to a licensing and development agreement, as amended, with Alimera Sciences, Inc. (Alimera) (the Amended Alimera Agreement) for an upfront cash payment of $ 16.5 million. The Company classified the proceeds received from SWK as deferred revenue. The Company recognized $ 255,000 and $ 225,000 of royalty revenue related to the RPA for the three months ended March 31, 2023 and 2022, respectively, in connection with the royalty payment of $ 727,000 and $ 724,000 for the three months ended March 31, 2023 and 2022 from Alimera to SWK, pursuant to the Amended Alimera Agreement, respectively. As of March 31, 2023, the Company had $ 1.2 million and $ 13.3 million as current and non-current deferred revenue recognized under the RPA, respectively. As of December 31, 2022, the Company classified $ 1.2 million and $ 13.6 million as current and non-current deferred revenue recognized under the RPA, respectively. Ocumension Therapeutics Pursuant to license agreements and a Memorandum of Understanding signed with the Company, Ocumension Therapeutics (Ocumension) has: • An exclusive license for the development and commercialization of its three-year micro insert using the Durasert technology for the treatment of posterior segment uveitis of the eye (YUTIQ in the U.S.) in Mainland China, Hong Kong, Macau and Taiwan at its own cost and expense in return for royalties based on sales with the Company supplying products for clinical trials and commercial sale; • An exclusive license for the development and commercialization in Mainland China, Hong Kong, Macau and Taiwan of DEXYCU for the treatment of post-operative inflammation following ocular surgery at its own cost and expense in return for royalties based on sales with the Company supplying product for clinical trials and commercial sale; and • Exclusive rights to develop and commercialize YUTIQ and DEXYCU products under its own brand names in South Korea and other jurisdictions across Southeast Asia in Brunei, Burma (Myanmar), Cambodia, Timor-Leste, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam, at its own cost and expense in return for royalties based on sales with the Company supplying product for clinical trials and commercial sale. In September 2021, Ocumension announced its receipt of approval from Chinese regulatory authorities for DEXYCU under Ocumension’s distinct name to conduct a Phase 3 clinical trial in China. In June 2022, Ocumension announced its receipt of approval of the NDA from Chinese regulatory authorities for YUTIQ under Ocumension’s distinct name. The Chief Executive Officer of Ocumension became a director of the Company starting December 31, 2020, pursuant to a Share Purchase Agreement pursuant to which the Company sold to Ocumension 3,010,722 shares of common stock, at which time, Ocumension became a related party of the Company. During the three months ended March 31, 2023 and 2022, in addition to $ 11,000 and $ 56,000 of revenue from product sales, respectively, the Company recognized approximately $ 30,000 and $ 59,000 of license and collaboration revenue, respectively, related to additional technical assistance. No royalty income was recorded for the three months ended March 31, 2023 and 2022. Exclusive License Agreement with Betta Pharmaceuticals, Co., Ltd. On May 2, 2022, the Company entered into an Exclusive License Agreement (the Betta License Agreement) with Betta Pharmaceuticals Co., Ltd. (Betta), an affiliate of Equinox Sciences, LLC (Equinox) (see Note 11). Under the Betta License Agreement, the Company granted to Betta an exclusive, sublicensable, royalty-bearing license under certain of the Company’s intellectual property to develop, use (but not make or have made), sell, offer for sale and import the Company’s product candidate, EYP-1901, an investigational sustained delivery intravitreal anti-VEGF treatment that combines an erodible formulation of the Company’s proprietary sustained-release technology with the compound vorolanib (the Licensed Product), in the field of ophthalmology (the Betta Field) in the Greater Area of China, including China, the Hong Kong Special Administrative Region, the Macau Special Administrative Region, and Taiwan (the Betta Territory). The Company retained rights under the Company’s intellectual property to, among other things, conduct clinical trials on the Licensed Product in the Betta Field in the Betta Territory. In consideration for the rights granted by the Company, Betta agreed to pay the Company tiered, mid-to-high single-digit royalties based upon annual net sales of Licensed Products in the Betta Territory. The royalties are payable on a Licensed Product-by-Licensed Product and region-by-region basis commencing on the first commercial sale of a Licensed Product in a region and continuing until the later of (i) the date that is twelve (12) years after first commercial sale of such Licensed Product in such region, and (ii) the first day of the month following the month in which a generic product corresponding to such Licensed Product is launched in the relevant region. The royalty rate is subject to reduction under certain circumstances, including when there is no valid claim of a licensed patent that covers a Licensed Product in a particular region. Betta is responsible for all costs relating to development, registration, manufacturing, marketing, advertising, promotional, launch and sales activities in connection with the Licensed Products in the Betta Field in the Betta Territory. Betta is required to use commercially reasonable efforts to develop, seek regulatory approval for, and commercialize at least one Licensed Product in the Betta Field in the Betta Territory. The Betta License Agreement also requires Betta to achieve certain diligence milestones relating to regulatory filings, patient dosing and regulatory approval by certain specified deadlines set forth in the Betta License Agreement, subject to certain exceptions and extensions as set forth in the Betta License Agreement. Betta’s development activities will be conducted pursuant to a development plan subject to periodic updates. In the event that the Company conducts a global registrational clinical trial for a Licensed Product in the Betta Field, Betta will have the right to participate in such clinical trial by including clinical trial sites in the Betta Territory in accordance with the terms of the Betta License Agreement. The Company has also agreed to provide certain technology transfer and other support services to Betta subject to certain conditions and limitations set forth in the Betta License Agreement. The Company recorded no revenue from product sales, license and collaboration revenue, or royalty income for the three months ended March 31, 2023 and 2022 related to this agreement. Research Collaborations The Company from time to time e nters into agreements to evaluate the potential use of its technologies for sustained release of third-party partner drug candidates. Consideration received is generally recognized as revenue over the term of the research collaborations. Revenue recognition for consideration, if any, related to a license option right is assessed based on the terms of any such future license agreement or is otherwise recognized at the completion of the research collaborations. No revenue was recorded under research collaborations for the three months ended March 31, 2023 and 2022. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Mar. 31, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | 4. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): March 31, December 31, Prepaid expenses $ 2,443 $ 2,723 Prepaid clinical 6,638 6,353 Other — 782 Total prepaid expenses and other current assets $ 9,081 $ 9,858 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | 5. Inventory Inventory consisted of the following (in thousands): March 31, December 31, Raw materials $ 1,274 $ 1,410 Work in process 1,600 1,078 Finished goods 1,197 398 Total inventory $ 4,071 $ 2,886 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 6. Accrued Expenses Accrued expenses consisted of the following at March 31, 2023 and December 31, 2022 (in thousands): March 31, December 31, 2023 2022 Personnel costs $ 4,254 $ 9,515 Clinical trial costs 3,287 3,308 Professional fees 920 761 Sales chargebacks, rebates and other revenue reserves 891 1,017 Commissions due to DEXYCU commercial partner 249 752 Other 884 1,006 Total accrued expenses $ 10,485 $ 16,359 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | 7. Leases On May 17, 2018, the Company amended the lease for its headquarters in Watertown, Massachusetts. The original five-year lease for approximately 13,650 square feet of combined office and laboratory space was set to expire in April 2019 . Under the amendment, the Company leased an additional 6,590 square feet of rentable area of the building, with a commencement date of September 10, 2018 . The amendment extended the term of the lease for the combined space through May 31, 2025 , and the landlord provided the Company a construction allowance of up to $ 670,750 to be applied toward renovations and improvements within the total space. On April 5, 2021, the Company further amended the lease to include an additional 1,409 square feet of rentable area of the building, through May 31, 2025 , with a commencement date of July 1, 2021 . On March 8, 2022, the Company further amended the lease (i) to extend the term to May 31, 2028 for 13,650 square feet of laboratory and manufacturing operations space, with the landlord agreeing to provide the Company a construction allowance of up to $ 555,960 to be applied toward upgrades and improvements within the space; (ii) to rent an additional 11,999 square feet of office space within the building through May 31, 2028 (New Premises); and (iii) to terminate a portion of the lease comprising 7,999 square feet of office space in the building in accordance with its existing contractual term on May 31, 2025. The amendment also reinstated the Company’s right to extend the lease for the space it occupies after May 31, 2025 for one additional period of five years . Rent for the extension period would be at the fair market rent for comparable space in comparable properties in the Watertown area. During the second quarter of 2022, the Company recognized a $ 2.9 million increase to its lease liabilities and right-of-use (ROU) assets resulting from the lease amendment for the term extension of the laboratory and manufacturing operations space. The lease for the New Premises commenced during the third quarter of 2022. The Company occupied the New Premises when the landlord substantially completed its construction for the space, after which the Company’s obligation to pay base rent began. The Company recognized an increase of $ 1.6 million to its lease liabilities and $ 1.7 million to its ROU assets resulting from the lease for the New Premises. The Company previously provided a cash-collateralized $ 150,000 irrevocable standby letter of credit as security for the Company’s obligations under the lease, which will remain in effect through the period that is four months beyond the expiration date of the amended lease. The Company will also be required to pay its proportionate share of certain operating costs and property taxes applicable to the leased premises in excess of new base year amounts. On January 23, 2023, the Company entered into a lease agreement with V.E. Properties IX, LLC for its new standalone manufacturing facility, including office and lab space located at 600 Commerce Drive, Northbridge, Massachusetts. The new leased premises will consist of approximately 40,000 square feet. The lease includes a lease term of fifteen years and four months , with two options to extend the lease term for two additional terms of either five years or ten years at 95 % of the then-prevailing fair market rent. The lease term will commence upon the substantial completion of construction to prepare the premises for the Company’s intended use, which is currently expected to occur during the second half of 2024, provided, however, that the Company’s obligation to pay base rent will begin four months following the commencement of the lease term. The lease will create significant rights and obligations for the Company, including the payment of base rent on monthly basis, of which the Company estimates will total approximately $ 40.8 million during the initial non-cancellable term of the lease (i.e., fifteen years and four months ). The Company is responsible for real estate taxes, maintenance, and other operating expenses applicable to the leased premises. As of the date the condensed consolidated financial statements were issued, construction had not yet commenced and a lease commencement date in accordance with ASC 842, Leases , had not occurred, as such, no ROU or lease liability has been recorded as of March 31, 2023. The Company identified and assessed the following significant assumptions in recognizing its ROU assets and corresponding lease liabilities: • As the Company’s leases do not specify an implicit rate, the Company estimated its incremental borrowing rate to calculate the present value of the lease payments. The Company utilized the borrowing rate under its CRG term loan facility (see Note 8) in the overall assessment of the discount rate for all leases, with the exception of the amendment dated March 8, 2022, for which the Company utilized the borrowing rate under its SVB term loan facility (see Note 8) in the overall assessment of the discount rate. • Since the Company elected to account for each lease component and its associated non-lease components as a single combined component, all contract consideration was allocated to the respective lease components. • The expected lease terms include non-cancellable lease periods. Renewal option periods have not been included in the determination of the lease terms as they are not deemed reasonably certain of exercise. • Variable lease payments, such as common area maintenance, real estate taxes and property insurance are not included in the determination of the lease’s ROU asset or lease liability. As of March 31 , 2023, the weighted average remaining term of the Company’s operating leases was 5.0 years and the weighted average discount rate was 5.84 %. Supplemental balance sheet information related to operating leases as of March 31, 2023 and December 31, 2022 are as follows (in thousands): March 31, December 31, 2023 2022 Other current liabilities – operating lease current portion $ 754 $ 543 Operating lease liabilities – noncurrent portion 5,721 5,984 Total operating lease liabilities $ 6,475 $ 6,527 Operating lease expense recognized related to ROU assets was $ 355,000 and $ 229,000 , excluding $ 45,000 and $ 3,000 of variable lease costs, for each of the three months ended March 31, 2023 and 2022, respectively, which consisted of $ 291,000 and $ 159,000 for research and development expense, $ 0 and $ 28,000 for sales and marketing expense, and $ 64,000 and $ 42,000 for general and administrative expense, respectively, and was included in the Company’s statement of comprehensive loss. Cash paid for amounts included in the measurement of operating lease liabilities was $ 145,000 and $ 242,000 for the three months ended March 31, 2023 and 2022, respectively. The Company’s total future minimum lease payments under non-cancellable leases at March 31, 2023 were as follows (in thousands): Operating Leases Remainder of 2023 $ 765 2024 1,392 2025 1,494 2026 1,589 2027 1,637 Thereafter 693 Total lease payments $ 7,570 Less imputed interest ( 1,095 ) Total $ 6,475 |
Loan Agreements
Loan Agreements | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Loan Agreements | 8. Loan Agreements SVB Loan Agreement On March 9, 2022 (the SVB Closing Date), the Company entered into a loan and security agreement (the SVB Loan Agreement) with First Citizens BancShares, Inc. (First Citizens) as successor to Silicon Valley Bank (SVB), providing for (i) a senior secured term loan facility of $ 30.0 million (the Term Facility) and (ii) a senior secured revolving credit facility of up to $ 15.0 million (the Revolving Facility and together with the Term Facility, the Credit Facilities). The maximum amount available for borrowing at any time under the Revolving Facility is limited to a borrowing base valuation of the Company’s eligible accounts receivable. On the SVB Closing Date, $ 30.0 million of the Term Facility and $ 11.5 million of the Revolving Facility, were advanced, to pay off the CRG Loan Agreement, dated February 13, 2019 , among the Company, as borrower, CRG Servicing LLC, as administrative agent and collateral agent, and the lenders party thereto from time to time, providing for a senior secured term loan of up to $ 60 million (CRG Loan), including the accrued interest through that date. The Revolving Facility is classified as short-term borrowings in the condensed consolidated balance sheets. The loans under the Credit Facilities are due and payable on January 1, 2027 (the SVB Maturity Date). The Credit Facilities bear interest that is payable monthly in arrears at a per annum rate (subject to increase during an event of default) equal to (i) with respect to the Term Facility, the greater of (x) the Wall Street Journal prime rate plus 2.25 % and (y) 5.50 % and (ii) with respect to the Revolving Facility, the Wall Street Journal Prime Rate. An unused commitment fee of 0.25 % per annum applies to unutilized borrowing capacity under the Revolving Facility. Commencing on February 1, 2024 , the Company is required to repay the principal of the Term Facility in 36 consecutive equal monthly installments. At maturity or if earlier prepaid, the Company will also be required to pay an exit fee equal to 2.00 % of the aggregate principal amount of the Term Facility. The repayment of all unpaid principal and accrued interest under the Credit Facilities may be accelerated upon consummation of a specified change of control transaction or the occurrence of certain other events of default (as specified in the SVB Loan Agreement). Subject to certain exceptions, the Company is also required to make mandatory prepayments of outstanding loans under the Credit Facilities with the proceeds of assets sales and insurance proceeds, which amounts in the case of the Revolving Facility, subject to the conditions set forth in the SVB Loan Agreement, may be re-borrowed. All voluntary and mandatory prepayments of the Term Facility are subject to the payment of prepayment premiums as follows: (i) if prepayment occurs on or prior to the first anniversary of the SVB Closing Date, an amount equal to 3.0 % of the aggregate outstanding principal amount of the Term Facility being prepaid, (ii) if prepayment occurs after the first anniversary of the SVB Closing Date and on or prior to the second anniversary of the SVB Closing Date, 2.0 % of the aggregate outstanding principal amount of the Term Facility being prepaid, (iii) if prepayment occurs after the second anniversary of the SVB Closing Date and on or prior to the third anniversary of the SVB Closing Date, 1.0 % of the aggregate outstanding principal amount of the Term Facility being prepaid and (iv) if prepayment occurs after the third anniversary of the SVB Closing Date but prior to the SVB Maturity Date, an amount equal to 0.50 % of the aggregate outstanding principal amount of the Term Facility being prepaid. The prepayment of the Term Facility in full is also subject to the payment of an exit fee of $ 600,000 . The Company may voluntarily terminate the Revolving Facility at any time, subject to the payment of a termination fee as follows: (i) if such termination occurs on or prior to the first anniversary of the SVB Closing Date, an amount equal to 3.0 % of the Revolving Facility and (ii) if such termination occurs after the first anniversary of the SVB Closing Date, 1.0 % of the Revolving Facility. The obligations of the Company under the SVB Loan Agreement are secured by a pledge of substantially all of the Company’s assets, excluding intellectual property. Certain of the Company’s future subsidiaries will be required to become co-borrowers under the SVB Loan Agreement or guarantee the obligations of the Company under the SVB Loan Agreement. In addition, such subsidiaries will be required to pledge substantially all of their assets, excluding intellectual property, to secure the obligations of the Company under the SVB Loan Agreement. The SVB Loan Agreement contains affirmative and negative covenants customary for financings of this type, including limitations on the Company and its subsidiaries’ abilities, among other things, to incur additional debt, grant or permit additional liens, make investments and acquisitions, merge or consolidate with others, dispose of assets, pay dividends and distributions, enter into affiliate transactions and change its line of business, in each case, subject to certain exceptions. On March 7, 2023, the Company and SVB entered into an amendment to the SVB Loan Agreement, modifying the quarterly financial covenants of the agreement. Pursuant to the amendment, commencing upon December 31, 2022, the Company is required to maintain, at all times, unrestricted and unencumbered cash and cash equivalents in an amount equal to the greater of (i) $ 50,000,000 and (ii) the Company’s six-month Cash Burn (as defined in the SVB Loan Agreement). Amortization of debt discount under the SVB Loan Agreement totaled $ 60,000 and $ 18,000 for the three months ended March 31, 2023 and 2022. Commitment fees under the revolving facility were immaterial. The Company’s scheduled principal payments for debt at March 31, 2023 were as follows (in thousands): Remainder of 2023 $ — 2024 9,167 2025 10,000 2026 10,000 2027 833 Total $ 30,000 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity Equity Financings Common Stock Offering There were no equity financings during the three months ended March 31, 2023 and 2022. ATM Facility In August 2020, the Company entered into an at-the-market facility (the ATM Facility) with Cantor Fitzgerald & Co (Cantor). Pursuant to the ATM Facility, the Company may, at its option, offer and sell shares of its common stock from time to time, through or to Cantor, acting as sales agent. The Company will pay Cantor a commission of 3.0 % of the gross proceeds from any future sales of such shares. During the three months ended March 31, 2023 and 2022, the Company did no t sell any shares of its common stock under the ATM Facility. Warrants to Purchase Common Shares The following table provides a reconciliation of fixed price warrants to purchase shares of the Company’s common stock for the three months ended March 31, 2023 and 2022: Three Months Ended 2023 2022 Weighted Weighted Average Average Number of Exercise Number of Exercise Warrants Price Warrants Price Balance at beginning of period 48,683 $ 12.33 48,683 $ 12.33 Balance and exercisable at end of period 48,683 $ 12.33 48,683 $ 12.33 Pursuant to a credit agreement, the Company issued a warrant to SWK Funding LLC to purchase (i) 40,910 shares of the Company’s common stock on March 28, 2018 at an exercise price of $ 11.00 per share with a seven-year term and (ii) 7,773 shares of the Company’s common stock on June 26, 2018 at an exercise price of $ 19.30 per share with a seven-year term. At March 31, 2023, the weighted average remaining life of the warrant was approximately 2.03 years. |
Share-Based Payment Awards
Share-Based Payment Awards | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payment Awards | 10. Share-Based Payment Awards Equity Incentive Plan The 2016 Long-Term Incentive Plan (the 2016 Plan), approved by the Company’s stockholders on December 12, 2016 provided for the issuance of up to 300,000 shares of the Company’s common stock plus any additional shares of the Company’s common stock that were available for grant under the 2008 Incentive Plan (the 2008 Plan). Stockholders approved amendments to the 2016 Plan on June 25, 2019, June 22, 2021, and November 10, 2022, respectively, which increased the number of shares authorized for issuance by 1,100,000 , 2,500,000 , and 2,000,000 shares, respectively. At March 31, 2023, a total of approximately 156,000 shares were available for new awards. Starting March 2022, the Company also granted non-statutory stock options to new employees as inducement awards to enter into employment with the Company. The grants were approved by the Compensation Committee of the Board of Directors and awarded in accordance with Nasdaq Listing Rule 5635(c)(4). Although not awarded under the 2016 Plan or the 2008 Plan, the grants are subject to and governed by the terms and conditions of the 2016 Plan. Stock Options The following table provides a reconciliation of stock option activity under the Company’s equity incentive plans and for inducement awards for the three months ended March 31, 2023: Number of Weighted Weighted Aggregate (in years) (in thousands) Outstanding at January 1, 2023 4,082,555 $ 13.79 Granted 2,003,895 3.27 Exercised — — Forfeited ( 17,354 ) 9.04 Expired — — Outstanding at March 31, 2023 6,069,096 $ 10.33 8.33 $ 6 Exercisable at March 31, 2023 2,075,691 $ 16.73 6.63 $ — The Company has granted stock options with 25% of the option vesting after one year followed by ratable monthly vesting over the remaining three years . Nonemployee awards are granted similar to the Company’s employee awards. All option grants have a 10 -year term. Options to purchase a total of 509,000 shares of the Company’s common stock vested during the three months ended March 31, 2023. Starting February 2021, the Company (i) ceased vesting ratable monthly over four years and (ii) retained 25% vesting after one year followed by ratable monthly vesting over the remaining three years . In determining the grant date fair value of option awards during the three months ended March 31, 2023, the Company applied the Black-Scholes option pricing model based on the following key assumptions: Option life (in years) 6.08 Stock volatility 78 % - 79 % Risk-free interest rate 3.54 % - 3.95 % Expected dividends 0.0 % The following table summarizes information about employee, non-executive director and external consultant stock options for the three months ended March 31, 2023 (in thousands except per share amount): Three Months Ended March 31, 2023 Weighted average grant date fair value per share $ 2.28 Total cash received from exercise of stock options — Total intrinsic value of stock options exercised — Time-Vested Restricted Stock Units Time-vested restricted stock units (RSUs) issued to date under the 2016 Plan generally vest on a ratable annual basis over 3 years. The related stock-based compensation expense is recorded over the requisite service period, which is the vesting period. The fair value of all time-vested RSUs is based on the closing share price of the Company’s common stock on the date of grant. The following table provides a reconciliation of RSU activity under the 2016 Plan for the three months ended March 31, 2023: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Nonvested at January 1, 2023 509,170 $ 10.81 Granted — — Vested ( 196,102 ) 11.12 Forfeited ( 2,051 ) 10.74 Nonvested at March 31, 2023 311,017 $ 10.62 At March 31, 2023, the weighted average remaining vesting term of the RSUs was 1.36 years. Employee Stock Purchase Plan On June 25, 2019, the Company’s stockholders approved the adoption of the EyePoint Pharmaceuticals, Inc. 2019 Employee Stock Purchase Plan (the ESPP) and authorized up to 110,000 shares of common stock reserved for issuance to participating employees. At the Company’s Annual Meeting of Stockholders held on June 22, 2021, the Company’s stockholders approved an amendment to the ESPP to increase the number of shares authorized for issuance by 250,000 shares. The ESPP allows qualified participants to purchase the Company’s common stock twice a year at 85 % of the lesser of the average of the high and low sales price of the Company’s common stock on (i) the first trading day of the relevant offering period and (ii) the last trading day of the relevant offering period. The number of shares of the Company’s common stock each employee may purchase under this plan, when combined with all other employee stock purchase plans, is limited to the lower of an aggregate fair market value of $ 25,000 during each calendar year, or 5,000 shares of the Company’s common stock in any one offering period. The Company has maintained consecutive six-month offering periods since August 1, 2019 . During the three-month period ended March 31 , 2023, 63,721 shares of the Company’s common stock were issued pursuant to the ESPP. The Company estimated the fair value of the option component of the ESPP shares at the date of grant using a Black-Scholes valuation model. During the three months ended March 31, 2023 and 2022, the compensation expense from ESPP shares was approximately $ 47,000 and $ 33,000 . Stock-Based Compensation Expense The Company’s condensed consolidated statements of comprehensive loss included total compensation expense from stock-based payment awards for the three months ended March 31, 2023 and 2022, respectively, as follows (in thousands): Three Months Ended 2023 2022 Compensation expense included in: Research and development $ 1,240 $ 1,473 Sales and marketing 430 409 General and administrative 1,380 1,595 $ 3,050 $ 3,477 At March 31, 2023, there was approximately $ 11.9 million of unrecognized compensation expense related to outstanding equity awards under the 2016 Plan, the 2008 Plan, the inducement awards and the ESPP that is expected to be recognized as expense over a weighted average period of approximately 1.7 years. |
License and Asset Purchase Agre
License and Asset Purchase Agreements | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
License and Asset Purchase Agreements | 11. License and Asset Purchase Agreements Equinox Science, LLC In February 2020, the Company entered into an Exclusive License Agreement (the Equinox License Agreement) with Equinox, pursuant to which Equinox granted the Company an exclusive, sublicensable, royalty-bearing right and license to certain patents and other Equinox intellectual property to research, develop, make, have made, use, sell, offer for sale and import the compound vorolanib and any pharmaceutical products comprising the compound for local delivery to the eye for the prevention or treatment of age-related macular degeneration, diabetic retinopathy and retinal vein occlusion using the Company’s proprietary localized delivery technologies (the Original Field), in each case, throughout the world except China, Hong Kong, Taiwan and Macau (the Company Territory). In consideration for the rights granted by Equinox, the Company (i) made a one time, non-refundable, non-creditable upfront cash payment of $ 1.0 million to Equinox in February 2020, and (ii) agreed to pay milestone payments totaling up to $ 50 million upon the achievement of certain development and regulatory milestones, consisting of (a) completion of a Phase II clinical trial for the compound or a licensed product, (b) the filing of a new drug application or foreign equivalent for the compound or a licensed product in the United States, European Union or United Kingdom and (c) regulatory approval of the compound or a licensed product in the United States, European Union or United Kingdom. The Company also agreed to pay Equinox tiered royalties based upon annual net sales of licensed products in the Company Territory. The royalties are payable with respect to a licensed product in a particular country in the Company Territory on a country-by-country and licensed product-by-licensed product basis until the later of (i) twelve years after the first commercial sale of such licensed product in such country and (ii) the first day of the month following the month in which a generic product corresponding to such licensed product is launched in such country. The royalty rates range from the high-single digits to low-double digits depending on the level of annual net sales. The royalty rates are subject to reduction during certain periods when there is no valid patent claim that covers a licensed product in a particular country. On May 2, 2022, concurrent with the Company entering into the Betta License Agreement, the Company entered into Amendment #1 to the Equinox License Agreement, pursuant to which the Original Field was expanded to cover the prevention or treatment of ophthalmology indications using the Company’s proprietary localized delivery technologies and certain conforming changes were made to the Equinox License Agreement in connection therewith. No R&D expense was recorded for the three months ended March 31, 2023 and 2022 related to this agreement, as no milestones were achieved. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 12. Fair Value Measurements The following tables summarize the Company’s assets by significant categories carried at fair value measured on a recurring basis at March 31, 2023 and December 31, 2022 by valuation hierarchy (in thousands): March 31, 2023 Carrying Gross Gross Fair Value Cash Marketable Securities Level 1: Money market funds $ 99,794 $ — $ — $ 99,794 $ 99,794 $ — Subtotal $ 99,794 $ — $ — $ 99,794 $ 99,794 $ — Level 2: Commercial paper $ 2,783 $ — $ — $ 2,783 $ — $ 2,783 U.S. treasury securities 13,933 2 — 13,935 — 13,935 Subtotal $ 16,716 $ 2 $ — $ 16,718 $ — $ 16,718 Total $ 116,510 $ 2 $ — $ 116,512 $ 99,794 $ 16,718 December 31, 2022 Carrying Gross Gross Fair Value Cash Marketable Securities Level 1: Money market funds $ 77,191 $ — $ — $ 77,191 $ 77,191 $ — Subtotal $ 77,191 $ — $ — $ 77,191 $ 77,191 $ — Level 2: Commercial paper $ 18,701 $ — $ — $ 18,701 $ — $ 18,701 U.S. Treasury securities 35,266 — ( 55 ) 35,211 4,984 30,227 Subtotal $ 53,967 $ — $ ( 55 ) $ 53,912 $ 4,984 $ 48,928 Total $ 131,158 $ — $ ( 55 ) $ 131,103 $ 82,175 $ 48,928 At March 31, 2023 and December 31, 2022, a total of $ 99.8 million and $ 77.2 million, or 100 % and 93.9 % of the Company’s interest-bearing cash equivalent balances, respectively, were concentrated in one institutional money market fund that had investments consisting primarily of certificates of deposit, commercial paper, time deposits, Treasury repurchase agreements and U.S. Treasury securities. At March 31, 2023, the Company has no interest-bearing cash equivalent balance consisting of investment-grade U.S. Treasury securities. At December 31, 2022, a total of $ 5.0 million, or 6.1 %, of the Company’s interest-bearing cash equivalent balances, respectively, consisted of investment-grade U.S. Treasury securities. Generally, these deposits may be redeemed upon demand and, therefore, the Company believes they have minimal risk. Marketable securities consist of investments with an original or remaining maturity of greater than three months but less than one year at the date of purchase. The Company had investments of $ 16.7 million and $ 48.9 million in marketable securities at March 31, 2023 and December 31, 2022, respectively. The Company’s cash equivalents and marketable securities are classified within Level 1 or Level 2 on the basis of valuations using quoted market prices or alternative pricing sources and models utilizing market observable inputs, respectively. The marketable securities have been valued on the basis of valuations provided by third-party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and ask prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security, and have been classified as Level 2. The carrying amounts of accounts receivable, accounts payable and accrued expenses approximate fair value because of their short-term maturity. The carrying amounts of the short-term borrowings and long-term debt under the Company’s SVB Loan Agreement approximate the estimated fair value. These borrowings under the Credit Facilities have a variable interest rate structure and are classified within Level 2 of the fair value hierarchy. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 13. Contingencies Legal Proceedings The Company is subject to various routine legal proceedings and claims incidental to its business, which management believes will not have a material effect on the Company’s financial position, results of operations or cash flows. U.S. Department of Justice Subpoena In August 2022, the Company received a subpoena from the U.S. Attorney’s Office for the District of Massachusetts seeking production of documents related to sales, marketing and promotional practices, including as pertain to DEXYCU ® (DOJ Investigation). The Company is cooperating fully with the government in connection with this matter. At this time, the Company is unable to predict the duration, scope or outcome of this matter or whether it could have a material impact on the Company's financial condition, results of operation or cash flow. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 14. Net Loss per Share Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. For periods in which the Company reports net income, diluted net income per share is determined by adding to the basic weighted average number of common shares outstanding the total number of dilutive common equivalent shares using the treasury stock method, unless the effect is anti-dilutive. Potentially dilutive shares were not included in the calculation of diluted net loss per share for each of the three months ended March 31, 2023 and 2022 as their inclusion would be anti-dilutive. Potential common stock equivalents excluded from the calculation of diluted earnings per share because the effect would have been anti-dilutive were as follows: Three Months Ended 2023 2022 Stock options 6,069,096 3,974,102 ESPP 19,539 7,964 Warrants 48,683 48,683 Restricted stock units 311,017 559,586 6,448,335 4,590,335 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 15. Related Party Transactions The Chief Executive Officer of the Company joined the Board of Directors of Altasciences Company Inc. (Altasciences) in April 2021. In May 2021, Altasciences acquired Calvert Laboratories, Inc. (Calvert Labs), an entity with which the Company conducts business. The Company recorded $ 377,000 and $ 427,000 of research and development expense in the accompanying condensed consolidated statements of operations and comprehensive loss related to preclinical and analytical services provided by Altasciences for the three months ended March 31, 2023 and 2022, respectively. Additionally, the Company recorded amounts payable of $ 304,000 and $ 201,000 , and prepaid expenses of $ 721,000 and $ 752,000 in the accompanying condensed consolidated balance sheets related to services provided by Altasciences, as of March 31, 2023 and December 31, 2022, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, Revenue from Contracts with Customers (ASC 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 entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within the contract, 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. Sales, value-add and other taxes collected on behalf of third parties are excluded from revenue. Product sales, net — The Company sells YUTIQ and DEXYCU to a limited number of specialty distributors and specialty pharmacies (collectively the Distributors) in the U.S., with whom the Company has entered into formal agreements, for delivery to physician practices for YUTIQ and to hospital outpatient departments and ambulatory surgical centers (ASCs) for DEXYCU. The Company recognizes revenue on sales of its products when Distributors obtain control of the products, which occurs at a point in time, typically upon delivery. In addition to agreements with Distributors, the Company also enters into arrangements with healthcare providers, ASCs and payors that provide for government mandated and/or privately negotiated rebates, chargebacks and discounts with respect to the purchase of the Company’s products from Distributors. Reserves for variable consideration — Product sales are recorded at the wholesale acquisition costs, net of applicable reserves for variable consideration. Components of variable consideration include trade discounts and allowances, provider chargebacks and discounts, payor rebates, product returns and other allowances that are offered within contracts between the Company and its Distributors, payors and other contracted purchasers relating to the Company’s product sales. These reserves, as detailed below, are based on the amounts earned, or to be claimed on the related sales, and are classified either as reductions of product revenue and accounts receivable or a current liability, depending on how the amount is to be settled. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the respective underlying contracts. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the estimates, the Company adjusts product revenue and earnings in the period such variances become known. Distribution fees — The Company compensates its Distributors for services explicitly stated in the Company’s contracts and are recorded as a reduction of revenue in the period the related product sale is recognized. Provider chargebacks and discounts — Chargebacks are discounts that represent the estimated obligations resulting from contractual commitments to sell products at prices lower than the list prices charged to the Company’s Distributors. These Distributors charge the Company for the difference between what they pay for the product and the Company’s contracted selling price. These reserves are established in the same period that the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability. Reserves for chargebacks consist of amounts that the Company expects to pay for units that remain in the distribution channel inventories at each reporting period-end that the Company expects will be sold under a contracted selling price, and chargebacks that Distributors have claimed, but for which the Company has not yet settled. Government rebates — The Company is subject to discount obligations under state Medicaid programs and Medicare. These reserves are recorded in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability which is included in accrued expenses and other current liabilities on the condensed consolidated balance sheets. The Company’s liability for these rebates consists of invoices received for claims from prior quarters that have not been paid or for which an invoice has not yet been received, estimates of claims for the current quarter, and estimated future claims that will be made for product that has been recognized as revenue, but which remains in the distribution channel inventories at the end of each reporting period. Payor rebates — The Company contracts with certain private payor organizations, primarily insurance companies, for the payment of rebates with respect to utilization of its products. The Company estimates these rebates and records such estimates in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability. Co-Payment assistance — The Company offers co-payment assistance to commercially insured patients meeting certain eligibility requirements. The calculation of the accrual for co-pay assistance is based on an estimate of claims and the cost per claim that the Company expects to receive associated with product that has been recognized as revenue. Product returns — The Company generally offers a limited right of return based on its returned goods policy, which includes damaged product and remaining shelf life. The Company estimates the amount of its product sales that may be returned and records this estimate as a reduction of revenue in the period the related product revenue is recognized, as well as reductions to trade receivables, net on the condensed consolidated balance sheets. License and collaboration agreement revenue — The Company analyzes each element of its license and collaboration arrangements to determine the appropriate revenue recognition. The terms of the license agreement may include payment to the Company of non-refundable upfront license fees, milestone payments if specified objectives are achieved, and/or royalties on product sales. The Company recognizes revenue from upfront payments at a point in time, typically upon fulfilling the delivery of the associated intellectual property to the customer. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. The Company recognizes sales-based milestone payments as revenue upon the achievement of the cumulative sales amount specified in the contract in accordance with ASC 606-10-55-65. For those milestone payments which are contingent on the occurrence of particular future events, the Company determines that these need to be considered for inclusion in the calculation of total consideration from the contract as a component of variable consideration using the most-likely amount method. As such, the Company assesses each milestone to determine the probability and substance behind achieving each milestone. Given the inherent uncertainty associated with these future events, the Company will not recognize revenue from such milestones until there is a high probability of occurrence, which typically occurs near or upon achievement of the event. When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in paragraph 606-10-32-18, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. None of the Company’s contracts contained a significant financing component as of March 31, 2023. Royalties — The Company recognizes revenue from license arrangements with its commercial partners’ net sales of products. Such revenues are included as royalty income. In accordance with ASC 606-10-55-65, royalties are recognized when the subsequent sale of the commercial partner’s products occurs. The Company’s commercial partners are obligated to report their net product sales and the resulting royalty due to the Company typically within 60-days from the end of each quarter. Based on historical product sales, royalty receipts and other relevant information, the Company recognizes royalty income each quarter and subsequently determines a true-up when it receives royalty reports and payment from its commercial partners. Historically, these true-up adjustments have been immaterial. Sale of Future Royalties — The Company has sold its rights to receive certain royalties on product sales. In the circumstance where the Company has sold its rights to future royalties under a royalty purchase agreement (RPA) and also maintains limited continuing involvement in the arrangement (but not significant continuing involvement in the generation of the cash flows that are due to the purchaser), the Company defers recognition of the proceeds it receives for the sale of royalty streams and recognizes such unearned revenue as revenue under the units-of-revenue method over the life of the underlying license agreement. Under the units-of-revenue method, amortization for a reporting period is calculated by computing a ratio of the proceeds received from the purchaser to the total payments expected to be made to the purchaser over the term of the agreement, and then applying that ratio to the period’s cash payment. Estimating the total payments expected to be received by the purchaser over the term of such arrangements requires management to use subjective estimates and assumptions. Changes to the Company’s estimate of the payments expected to be made to the purchaser over the term of such arrangements could have a material effect on the amount of revenues recognized in any particular period. Research Collaborations — The Company recognizes revenue over the term of the statements of work under any funded research collaborations. Revenue recognition for consideration, if any, related to a license option right is assessed based on the terms of any such future license agreement or is otherwise recognized at the completion of the research collaborations. Please refer to Note 3 for further details on the license and collaboration agreements into which the Company has entered and corresponding amounts of revenue recognized during the current and prior year periods. Cost of sales, excluding amortization of acquired intangible assets — Cost of sales, excluding amortization of acquired intangible assets, consist of costs associated with the manufacture of YUTIQ and DEXYCU, certain period costs for DEXYCU product revenue, product shipping and, as applicable, royalty expense. The inventory costs for YUTIQ include purchases of various components, the active pharmaceutical ingredient (API) and direct labor and overhead for the product manufactured in the Company’s Watertown, Massachusetts facility. The inventory costs for DEXYCU include purchased components, the API and third-party manufacturing and assembly. For the three months ended March 31, 2023 and 2022, the Company accrued DEXYCU product revenue-based royalty expense of $ 1,000 and $ 674,000 , respectively, as a component of cost of sales. |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted and Recently Issued Accounting Pronouncements New accounting pronouncements are issued periodically by the Financial Accounting Standards Board and are adopted by the Company as of the specified effective dates. The Company believes that recently issued and adopted pronouncements will not have a material impact on the Company’s financial position, results of operations and cash flows or do not apply to the Company’s operations. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Product Revenue Allowances and Reserves | The following table summarizes activity in each of the product revenue allowance and reserve categories for the three months ended March 31, 2023 and 2022 (in thousands): Chargebacks, Government and Fees Rebates Returns Total Beginning balance at January 1, 2023 $ 859 $ 158 $ 871 $ 1,888 Provision related to sales in the current year 823 — — 823 Adjustments related to prior period sales 40 ( 40 ) ( 18 ) ( 18 ) Deductions applied and payments made ( 846 ) ( 103 ) ( 32 ) ( 981 ) Ending balance at March 31, 2023 $ 876 $ 15 $ 821 $ 1,712 Chargebacks, Government and Fees Rebates Returns Total Beginning balance at January 1, 2022 $ 1,153 $ 1,821 $ 379 $ 3,353 Provision related to sales in the current year 2,674 2,003 140 4,817 Adjustments related to prior period sales — — — — Deductions applied and payments made ( 1,904 ) ( 1,693 ) ( 87 ) ( 3,684 ) Ending balance at March 31, 2022 $ 1,923 $ 2,131 $ 432 $ 4,486 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): March 31, December 31, Prepaid expenses $ 2,443 $ 2,723 Prepaid clinical 6,638 6,353 Other — 782 Total prepaid expenses and other current assets $ 9,081 $ 9,858 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following (in thousands): March 31, December 31, Raw materials $ 1,274 $ 1,410 Work in process 1,600 1,078 Finished goods 1,197 398 Total inventory $ 4,071 $ 2,886 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following at March 31, 2023 and December 31, 2022 (in thousands): March 31, December 31, 2023 2022 Personnel costs $ 4,254 $ 9,515 Clinical trial costs 3,287 3,308 Professional fees 920 761 Sales chargebacks, rebates and other revenue reserves 891 1,017 Commissions due to DEXYCU commercial partner 249 752 Other 884 1,006 Total accrued expenses $ 10,485 $ 16,359 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases as of March 31, 2023 and December 31, 2022 are as follows (in thousands): March 31, December 31, 2023 2022 Other current liabilities – operating lease current portion $ 754 $ 543 Operating lease liabilities – noncurrent portion 5,721 5,984 Total operating lease liabilities $ 6,475 $ 6,527 |
Future Minimum Lease Payments Under Non-Cancellable Leases | The Company’s total future minimum lease payments under non-cancellable leases at March 31, 2023 were as follows (in thousands): Operating Leases Remainder of 2023 $ 765 2024 1,392 2025 1,494 2026 1,589 2027 1,637 Thereafter 693 Total lease payments $ 7,570 Less imputed interest ( 1,095 ) Total $ 6,475 |
Loan Agreements (Tables)
Loan Agreements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Scheduled Principal Payments for Debt | The Company’s scheduled principal payments for debt at March 31, 2023 were as follows (in thousands): Remainder of 2023 $ — 2024 9,167 2025 10,000 2026 10,000 2027 833 Total $ 30,000 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Summary of Reconciliation of Warrants to Purchase Common Stock | The following table provides a reconciliation of fixed price warrants to purchase shares of the Company’s common stock for the three months ended March 31, 2023 and 2022: Three Months Ended 2023 2022 Weighted Weighted Average Average Number of Exercise Number of Exercise Warrants Price Warrants Price Balance at beginning of period 48,683 $ 12.33 48,683 $ 12.33 Balance and exercisable at end of period 48,683 $ 12.33 48,683 $ 12.33 |
Share-Based Payment Awards (Tab
Share-Based Payment Awards (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Option Activity Under Plan | The following table provides a reconciliation of stock option activity under the Company’s equity incentive plans and for inducement awards for the three months ended March 31, 2023: Number of Weighted Weighted Aggregate (in years) (in thousands) Outstanding at January 1, 2023 4,082,555 $ 13.79 Granted 2,003,895 3.27 Exercised — — Forfeited ( 17,354 ) 9.04 Expired — — Outstanding at March 31, 2023 6,069,096 $ 10.33 8.33 $ 6 Exercisable at March 31, 2023 2,075,691 $ 16.73 6.63 $ — |
Schedule of Key Assumptions Used | In determining the grant date fair value of option awards during the three months ended March 31, 2023, the Company applied the Black-Scholes option pricing model based on the following key assumptions: Option life (in years) 6.08 Stock volatility 78 % - 79 % Risk-free interest rate 3.54 % - 3.95 % Expected dividends 0.0 % |
Summary of Information about Stock Options | The following table summarizes information about employee, non-executive director and external consultant stock options for the three months ended March 31, 2023 (in thousands except per share amount): Three Months Ended March 31, 2023 Weighted average grant date fair value per share $ 2.28 Total cash received from exercise of stock options — Total intrinsic value of stock options exercised — |
Summary of Restricted Stock Unit Activity | The following table provides a reconciliation of RSU activity under the 2016 Plan for the three months ended March 31, 2023: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Nonvested at January 1, 2023 509,170 $ 10.81 Granted — — Vested ( 196,102 ) 11.12 Forfeited ( 2,051 ) 10.74 Nonvested at March 31, 2023 311,017 $ 10.62 |
Compensation Expense from Stock-Based Payment Awards | The Company’s condensed consolidated statements of comprehensive loss included total compensation expense from stock-based payment awards for the three months ended March 31, 2023 and 2022, respectively, as follows (in thousands): Three Months Ended 2023 2022 Compensation expense included in: Research and development $ 1,240 $ 1,473 Sales and marketing 430 409 General and administrative 1,380 1,595 $ 3,050 $ 3,477 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Carried at Fair Value Measured on Recurring Basis | The following tables summarize the Company’s assets by significant categories carried at fair value measured on a recurring basis at March 31, 2023 and December 31, 2022 by valuation hierarchy (in thousands): March 31, 2023 Carrying Gross Gross Fair Value Cash Marketable Securities Level 1: Money market funds $ 99,794 $ — $ — $ 99,794 $ 99,794 $ — Subtotal $ 99,794 $ — $ — $ 99,794 $ 99,794 $ — Level 2: Commercial paper $ 2,783 $ — $ — $ 2,783 $ — $ 2,783 U.S. treasury securities 13,933 2 — 13,935 — 13,935 Subtotal $ 16,716 $ 2 $ — $ 16,718 $ — $ 16,718 Total $ 116,510 $ 2 $ — $ 116,512 $ 99,794 $ 16,718 December 31, 2022 Carrying Gross Gross Fair Value Cash Marketable Securities Level 1: Money market funds $ 77,191 $ — $ — $ 77,191 $ 77,191 $ — Subtotal $ 77,191 $ — $ — $ 77,191 $ 77,191 $ — Level 2: Commercial paper $ 18,701 $ — $ — $ 18,701 $ — $ 18,701 U.S. Treasury securities 35,266 — ( 55 ) 35,211 4,984 30,227 Subtotal $ 53,967 $ — $ ( 55 ) $ 53,912 $ 4,984 $ 48,928 Total $ 131,158 $ — $ ( 55 ) $ 131,103 $ 82,175 $ 48,928 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Potentially Dilutive Securities Excluded from Computation of Diluted Weighted-Average Shares | Potential common stock equivalents excluded from the calculation of diluted earnings per share because the effect would have been anti-dilutive were as follows: Three Months Ended 2023 2022 Stock options 6,069,096 3,974,102 ESPP 19,539 7,964 Warrants 48,683 48,683 Restricted stock units 311,017 559,586 6,448,335 4,590,335 |
Operations - Additional Informa
Operations - Additional Information (Detail) $ in Millions | Mar. 31, 2023 USD ($) |
Operations [Line Items] | |
Cash, cash equivalents and investments in marketable securities | $ 122.5 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
DEXYCU [Member] | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Accrued revenue-based royalty expense | $ 1,000 | $ 674,000 |
Revenue - Product Revenue Allow
Revenue - Product Revenue Allowance and Reserves (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disclosure Of Product Revenue Reserves And Allowances [Line Items] | ||
Beginning balance | $ 1,888 | $ 3,353 |
Provision related to sales in the current year | 823 | 4,817 |
Adjustments related to prior period sales | (18) | 0 |
Deductions applied and payments made | (981) | (3,684) |
Ending balance | 1,712 | 4,486 |
Chargebacks, Discounts and Fees [Member] | ||
Disclosure Of Product Revenue Reserves And Allowances [Line Items] | ||
Beginning balance | 859 | 1,153 |
Provision related to sales in the current year | 823 | 2,674 |
Adjustments related to prior period sales | 40 | 0 |
Deductions applied and payments made | (846) | (1,904) |
Ending balance | 876 | 1,923 |
Government and Other Rebates [Member] | ||
Disclosure Of Product Revenue Reserves And Allowances [Line Items] | ||
Beginning balance | 158 | 1,821 |
Provision related to sales in the current year | 0 | 2,003 |
Adjustments related to prior period sales | (40) | 0 |
Deductions applied and payments made | (103) | (1,693) |
Ending balance | 15 | 2,131 |
Returns [Member] | ||
Disclosure Of Product Revenue Reserves And Allowances [Line Items] | ||
Beginning balance | 871 | 379 |
Provision related to sales in the current year | 0 | 140 |
Adjustments related to prior period sales | (18) | 0 |
Deductions applied and payments made | (32) | (87) |
Ending balance | $ 821 | $ 432 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Dec. 31, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 7,683,000 | $ 9,294,000 | ||
Ocumension Therapeutics [Member] | Share Offering [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Issuance of stock, net of issue costs, shares | 3,010,722 | |||
RPA [Member] | SWK [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Upfront cash payment | 16,500,000 | |||
Revenue | 255,000 | 225,000 | ||
Royalty payments | 727,000 | 724,000 | ||
Deferred revenue, current | 1,200,000 | $ 1,200,000 | ||
Deferred revenue, non-current | 13,300,000 | $ 13,600,000 | ||
Product [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 7,394,000 | 9,010,000 | ||
Product [Member] | Ocumension Therapeutics [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 11,000 | 56,000 | ||
License and Collaboration Agreement [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 34,000 | 59,000 | ||
License and Collaboration Agreement [Member] | Ocumension Therapeutics [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 30,000 | 59,000 | ||
Royalty Income [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 255,000 | 225,000 | ||
Royalty Income [Member] | Ocumension Therapeutics [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Product Sales, License and Collaboration Revenue, or Royalty Income [Member] | Exclusive License Agreement with Betta Pharmaceuticals, Co., Ltd. | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Collaborative Research and Development [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 0 | $ 0 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 2,443 | $ 2,723 |
Prepaid clinical | 6,638 | 6,353 |
Other | 0 | 782 |
Total prepaid expenses and other current assets | $ 9,081 | $ 9,858 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,274 | $ 1,410 |
Work in process | 1,600 | 1,078 |
Finished goods | 1,197 | 398 |
Total inventory | $ 4,071 | $ 2,886 |
Intangible Assets - Reconciliat
Intangible Assets - Reconciliation of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 0 | $ (615) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Finite Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 0 | $ 615 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Personnel costs | $ 4,254 | $ 9,515 |
Clinical trial costs | 3,287 | 3,308 |
Professional fees | 920 | 761 |
Sales chargebacks, rebates and other revenue reserves | 891 | 1,017 |
Commissions due to DEXYCU commercial partner | 249 | 752 |
Other | 884 | 1,006 |
Total accrued expenses | $ 10,485 | $ 16,359 |
Leases - Additional Information
Leases - Additional Information (Detail) | 3 Months Ended | ||||||
Jan. 23, 2023 USD ($) ft² Tranche | Mar. 08, 2022 USD ($) ft² Tranche | Mar. 31, 2023 USD ($) ft² | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Disclosure Of Leases [Line Items] | |||||||
Estimates total lease initial noncancellable amount | $ 7,570,000 | ||||||
Lease liabilities | 6,475,000 | $ 6,527,000 | $ 2,900,000 | ||||
ROU assets | $ 5,777,000 | $ 6,038,000 | $ 2,900,000 | ||||
Operating lease weighted average remaining lease term | 5 years | ||||||
Operating lease weighted average discount rate | 5.84% | ||||||
Operating lease expense | $ 355,000 | $ 229,000 | |||||
Variable lease cost | 45,000 | 3,000 | |||||
Operating lease payments | 145,000 | 242,000 | |||||
Finance lease, financing cash flows | 18,000 | 33,000 | |||||
ASC 842 [Member] | |||||||
Disclosure Of Leases [Line Items] | |||||||
Lease liabilities | 0 | ||||||
ROU assets | 0 | ||||||
Research and Development Expense [Member] | |||||||
Disclosure Of Leases [Line Items] | |||||||
Operating lease expense | 291,000 | 159,000 | |||||
Sales and Marketing Expense [Member] | |||||||
Disclosure Of Leases [Line Items] | |||||||
Operating lease expense | 0 | 28,000 | |||||
General and Administrative Expense [Member] | |||||||
Disclosure Of Leases [Line Items] | |||||||
Operating lease expense | 64,000 | $ 42,000 | |||||
New Premises [Member] | |||||||
Disclosure Of Leases [Line Items] | |||||||
Lease liabilities | $ 1,600,000 | ||||||
ROU assets | $ 1,700,000 | ||||||
Massachusetts [Member] | |||||||
Disclosure Of Leases [Line Items] | |||||||
Lease not yet commenced term | The lease term will commence upon the substantial completion of construction to prepare the premises for the Company’s intended use, which is currently expected to occur during the second half of 2024, provided, however, that the Company’s obligation to pay base rent will begin four months following the commencement of the lease term. | ||||||
Estimates total lease initial noncancellable amount | $ 40,800,000 | ||||||
Term of contract | 15 years 4 months | ||||||
Lessee operating lease not yet commenced option to extend | The Company is responsible for real estate taxes, maintenance, and other operating expenses applicable to the leased premises. As of the date the condensed consolidated financial statements were issued, construction had not yet commenced and a lease commencement date in accordance with ASC 842, Leases, had not occurred, as such, no ROU or lease liability has been recorded as of March 31, 2023. | ||||||
Massachusetts [Member] | New Premises [Member] | |||||||
Disclosure Of Leases [Line Items] | |||||||
Area of leased office and laboratory space | ft² | 40,000 | ||||||
Original lease term | 15 years 4 months | ||||||
Lease existence of option to extend | true | ||||||
Lease option to extend | The lease includes a lease term of fifteen years and four months, with two options to extend the lease term for two additional terms of either five years or ten years at 95% of the then-prevailing fair market rent. | ||||||
Number of renewal options | Tranche | 2 | ||||||
Lease renewal rate at 95% of market rent at time of renewal | 95% | ||||||
Massachusetts [Member] | Minimum [Member] | New Premises [Member] | |||||||
Disclosure Of Leases [Line Items] | |||||||
Additional lease renewal option period | 5 years | ||||||
Massachusetts [Member] | Maximum [Member] | |||||||
Disclosure Of Leases [Line Items] | |||||||
Construction allowance | $ 670,750 | ||||||
Massachusetts [Member] | Maximum [Member] | New Premises [Member] | |||||||
Disclosure Of Leases [Line Items] | |||||||
Additional lease renewal option period | 10 years | ||||||
Massachusetts [Member] | Original Lease [Member] | |||||||
Disclosure Of Leases [Line Items] | |||||||
Area of leased office and laboratory space | ft² | 13,650 | ||||||
Original lease term | 5 years | ||||||
Lease expiration month year | 2019-04 | ||||||
Massachusetts [Member] | Second Amendment Lease [Member] | |||||||
Disclosure Of Leases [Line Items] | |||||||
Lease commencement date | Sep. 10, 2018 | ||||||
Lease term expiration date | May 31, 2025 | ||||||
Additional Space leased | ft² | 6,590 | ||||||
Irrevocable standby letter of credit | $ 150,000 | ||||||
Massachusetts [Member] | Third Amendment Lease [Member] | |||||||
Disclosure Of Leases [Line Items] | |||||||
Area of leased office and laboratory space | ft² | 1,409 | ||||||
Lease commencement date | Jul. 01, 2021 | ||||||
Lease term expiration date | May 31, 2025 | ||||||
Massachusetts [Member] | Fourth Amendment Lease [Member] | |||||||
Disclosure Of Leases [Line Items] | |||||||
Lease term expiration date | May 31, 2028 | ||||||
Termination of property area | ft² | 7,999 | ||||||
Lease existence of option to extend | true | ||||||
Area of leased office space | ft² | 13,650 | ||||||
Number of renewal options | Tranche | 1 | ||||||
Additional lease renewal option period | 5 years | ||||||
Massachusetts [Member] | Fourth Amendment Lease [Member] | New Premises [Member] | |||||||
Disclosure Of Leases [Line Items] | |||||||
Additional Space leased | ft² | 11,999 | ||||||
Massachusetts [Member] | Fourth Amendment Lease [Member] | Maximum [Member] | |||||||
Disclosure Of Leases [Line Items] | |||||||
Construction allowance | $ 555,960 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Related to Operating Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Leases [Abstract] | |||
Other current liabilities – operating lease current portion | $ 754 | $ 543 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | |
Operating lease liabilities - noncurrent | $ 5,721 | $ 5,984 | |
Total operating lease liabilities | $ 6,475 | $ 6,527 | $ 2,900 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Non-Cancellable Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Operating Leases | |||
Remainder of 2023 | $ 765 | ||
2024 | 1,392 | ||
2025 | 1,494 | ||
2026 | 1,589 | ||
2027 | 1,637 | ||
Thereafter | 693 | ||
Total future minimum lease payments | 7,570 | ||
Less imputed interest | (1,095) | ||
Total | $ 6,475 | $ 6,527 | $ 2,900 |
Loan Agreements - Additional In
Loan Agreements - Additional Information (Detail) | 3 Months Ended | ||||
Mar. 09, 2022 USD ($) Installment | Feb. 13, 2019 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Loan Agreement [Line Items] | |||||
Proceeds from issuance of long-term debt | $ 0 | $ 30,000,000 | |||
Loss on extinguishment of debt | 0 | (1,559,000) | |||
Borrowings under revolving facility | 5,300,000 | 11,459,000 | |||
Payment of exit fee | 0 | 2,294,000 | |||
Cash and cash equivalents | 105,765,000 | 101,545,000 | $ 95,633,000 | ||
RPA [Member] | SWK Funding LLC [Member] | |||||
Loan Agreement [Line Items] | |||||
Upfront cash payment | 16,500,000 | ||||
First Citizens BancShares, Inc. [Member] | |||||
Loan Agreement [Line Items] | |||||
Amortization of debt discount (premium) | 60,000 | $ 18,000 | |||
First Citizens BancShares, Inc. [Member] | Minimum [Member] | |||||
Loan Agreement [Line Items] | |||||
Cash and cash equivalents | $ 50,000,000 | ||||
First Citizens BancShares, Inc. [Member] | Senior Secured Term Loan [Member] | |||||
Loan Agreement [Line Items] | |||||
Agreement date | Mar. 09, 2022 | ||||
Senior secured term loan borrowing facility | $ 30,000,000 | ||||
Proceeds from issuance of long-term debt | $ 30,000,000 | ||||
Debt instrument effective rate | 5.50% | ||||
Line of credit facility commencing date | Feb. 01, 2024 | ||||
Number of consecutive equal monthly installment | Installment | 36 | ||||
Exit fee percentage of the aggregate principal amount | 2% | ||||
Payment of exit fee | $ 600,000 | ||||
First Citizens BancShares, Inc. [Member] | Senior Secured Term Loan [Member] | Prime Rate Margin [Member] | |||||
Loan Agreement [Line Items] | |||||
Revolving line bears interest rate | 2.25% | ||||
First Citizens BancShares, Inc. [Member] | Senior Secured Term Loan [Member] | Loan Prepayment Prior to First Anniversary [Member] | |||||
Loan Agreement [Line Items] | |||||
Principal prepayment premium percentage | 3% | ||||
First Citizens BancShares, Inc. [Member] | Senior Secured Term Loan [Member] | Loan Prepayment After First Anniversary and Prior to Second Anniversary [Member] | |||||
Loan Agreement [Line Items] | |||||
Principal prepayment premium percentage | 2% | ||||
First Citizens BancShares, Inc. [Member] | Senior Secured Term Loan [Member] | Loan Prepayment After Second Anniversary and Prior to Third Anniversary [Member] | |||||
Loan Agreement [Line Items] | |||||
Principal prepayment premium percentage | 1% | ||||
First Citizens BancShares, Inc. [Member] | Senior Secured Term Loan [Member] | Loan Prepayment After Third Anniversary and Prior to Maturity Date [Member] | |||||
Loan Agreement [Line Items] | |||||
Principal prepayment premium percentage | 0.50% | ||||
First Citizens BancShares, Inc. [Member] | Senior Secured Revolving Credit Facility [Member] | |||||
Loan Agreement [Line Items] | |||||
Senior secured revolving credit facility | $ 15,000,000 | ||||
Borrowings under revolving facility | $ 11,500,000 | ||||
Unused commitment fee | 0.25% | ||||
First Citizens BancShares, Inc. [Member] | Senior Secured Revolving Credit Facility [Member] | Loan Termination Prior to First Anniversary [Member] | |||||
Loan Agreement [Line Items] | |||||
Termination percentage | 3% | ||||
First Citizens BancShares, Inc. [Member] | Senior Secured Revolving Credit Facility [Member] | Loan Termination After First Anniversary [Member] | |||||
Loan Agreement [Line Items] | |||||
Termination percentage | 1% | ||||
First Citizens BancShares, Inc. [Member] | Senior Secured Revolving Credit Facility and Senior Secured Term Loan[Member] | |||||
Loan Agreement [Line Items] | |||||
Maturity date | Jan. 01, 2027 | ||||
CRG Servicing LLC [Member] | Senior Secured Term Loan [Member] | |||||
Loan Agreement [Line Items] | |||||
Agreement date | Feb. 13, 2019 | ||||
Senior secured revolving credit facility | $ 60,000,000 |
Loan Agreements - Scheduled Pri
Loan Agreements - Scheduled Principal Payments of Debt (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2023 | $ 0 |
2024 | 9,167 |
2025 | 10,000 |
2026 | 10,000 |
2027 | 833 |
Total | $ 30,000 |
Stockholders' Equity - Equity F
Stockholders' Equity - Equity Financings - Additional Information (Detail) - shares | 1 Months Ended | 3 Months Ended | |
Aug. 31, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | |
Equity Financings [Member] | Common Stock [Member] | |||
Class Of Stock [Line Items] | |||
Common stock issued | 0 | 0 | |
At-the-Market Offering [Member] | |||
Class Of Stock [Line Items] | |||
Stock issuances, sales agent commission maximum percentage | 3% | ||
At-the-Market Offering [Member] | Common Stock [Member] | |||
Class Of Stock [Line Items] | |||
Common stock issued | 0 | 0 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Reconciliation of Warrants to Purchase Share of the Company's Common Stock (Detail) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Stockholders' Equity Note [Abstract] | |||
Number of Warrants, Outstanding and exercisable, Beginning balance | 48,683 | 48,683 | 48,683 |
Number of Warrants, Outstanding and exercisable, Ending balance | 48,683 | 48,683 | 48,683 |
Weighted Average Exercise Price, Outstanding and exercisable, Beginning balance | $ 12.33 | $ 12.33 | $ 12.33 |
Weighted Average Exercise Price, Outstanding and exercisable, Ending balance | $ 12.33 | $ 12.33 | $ 12.33 |
Stockholders' Equity - Warrants
Stockholders' Equity - Warrants to Purchase Common Shares - Additional Information (Detail) - Senior Secured Term Loan [Member] - Warrants [Member] - $ / shares | 3 Months Ended | ||
Jun. 26, 2018 | Mar. 28, 2018 | Mar. 31, 2023 | |
SWK [Member] | |||
Class Of Stock [Line Items] | |||
Warrants issued to purchase shares of common stock | 7,773 | 40,910 | |
Exercise price of issued warrants | $ 19.30 | $ 11 | |
Warrants exercise period | 7 years | 7 years | |
Investor [Member] | |||
Class Of Stock [Line Items] | |||
Weighted average remaining life of lender warrants | 2 years 10 days |
Share-Based Payment Awards - Eq
Share-Based Payment Awards - Equity Incentive Plan - Additional Information (Detail) - 2016 Long Term Incentive Plan [Member] - shares | Mar. 31, 2023 | Nov. 10, 2022 | Jun. 22, 2021 | Jun. 25, 2019 | Dec. 12, 2016 |
Class Of Stock [Line Items] | |||||
Number of common stock, authorized for issuance | 2,000,000 | 2,500,000 | 1,100,000 | 300,000 | |
Shares available for grant under the Long Term Incentive Plan, including forfeited and terminated awards transferred from the 2008 Incentive Plan | 156,000 |
Share-Based Payment Awards - St
Share-Based Payment Awards - Stock Option Activity Under Company's Equity Incentive Plan (Detail) - Equity Incentive Plans and Inducement Awards [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options Outstanding, Beginning balance | shares | 4,082,555 |
Number of Options, Granted | shares | 2,003,895 |
Number of Options, Exercised | shares | 0 |
Number of Options, Forfeited | shares | (17,354) |
Number of Options, Expired | shares | 0 |
Number of Options Outstanding, Ending balance | shares | 6,069,096 |
Number of Options, Exercisable at March 31, 2023 | shares | 2,075,691 |
Weighted Average Exercise Price Outstanding, Beginning balance | $ / shares | $ 13.79 |
Weighted Average Exercise Price, Granted | $ / shares | 3.27 |
Weighted Average Exercise Price, Exercised | $ / shares | 0 |
Weighted Average Exercise Price, Forfeited | $ / shares | 9.04 |
Weighted Average Exercise Price, Expired | $ / shares | 0 |
Weighted Average Exercise Price Outstanding, Ending balance | $ / shares | 10.33 |
Weighted Average Exercise Price, Exercisable at March 31, 2023 | $ / shares | $ 16.73 |
Weighted Average Remaining Contractual Life, Outstanding at March 31, 2023 | 8 years 3 months 29 days |
Weighted Average Remaining Contractual Life, Exercisable at March 31, 2023 | 6 years 7 months 17 days |
Aggregate Intrinsic Value, Outstanding at March 31, 2023 | $ | $ 6 |
Aggregate Intrinsic Value, Exercisable at March 31, 2023 | $ | $ 0 |
Share-Based Payment Awards - _2
Share-Based Payment Awards - Stock Options - Additional Information (Detail) - shares | 3 Months Ended | 26 Months Ended |
Mar. 31, 2023 | Mar. 31, 2023 | |
2016 Long Term Incentive Plan [Member] | ||
Class Of Stock [Line Items] | ||
Ceased ratable monthly vesting period | 4 years | |
Contractual life of option grants | 10 years | |
Stock Compensation Plan [Member] | ||
Class Of Stock [Line Items] | ||
Ratable monthly vesting period | 1 year | 1 year |
Cliff vesting period | 3 years | 3 years |
Common stock vested during the period | 509,000 |
Share-Based Payment Awards - Su
Share-Based Payment Awards - Summary of Company Applied the Black-Scholes Option Pricing (Detail) - 2016 Long Term Incentive Plan [Member] | 3 Months Ended |
Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Option life (in years) | 6 years 29 days |
Stock volatility, minimum | 78% |
Stock volatility, maximum | 79% |
Risk-free interest rate, minimum | 3.54% |
Risk-free interest rate, maximum | 3.95% |
Expected dividends | 0% |
Share-Based Payment Awards - _3
Share-Based Payment Awards - Summary of Information about Stock Options (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Total cash received from exercise of stock options | $ 248 | $ 241 |
Equity Incentive Plans [Member] | ||
Weighted-average grant date fair value per share | $ 2.28 | |
Total cash received from exercise of stock options | $ 0 | |
Total intrinsic value of stock options exercised | $ 0 |
Share-Based Payment Awards - Ti
Share-Based Payment Awards - Time-Vested Restricted Stock Units - Additional Information (Detail) - RSU [Member] - 2016 Long Term Incentive Plan [Member] | 3 Months Ended |
Mar. 31, 2023 | |
Class Of Stock [Line Items] | |
Ratable annual vesting period of equity awards | 3 years |
Weighted average remaining vesting term | 1 year 4 months 9 days |
Share-Based Payment Awards - _4
Share-Based Payment Awards - Summary of Restricted Stock Unit Activity (Detail) - 2016 Long Term Incentive Plan [Member] - RSU [Member] | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Stock Units Outstanding, Beginning Balance | shares | 509,170 |
Number of stock units, Granted | shares | 0 |
Number of Stock Units, Vested | shares | (196,102) |
Number of Stock Units, Forfeited | shares | (2,051) |
Number of Stock Units Outstanding, Ending Balance | shares | 311,017 |
Weighted Average Grant Date Fair Value Nonvested, Beginning balance | $ / shares | $ 10.81 |
Weighted average grant date fair value, Granted | $ / shares | 0 |
Weighted Average Grant Date Fair value, Vested | $ / shares | 11.12 |
Weighted Average Grant Date Fair value, Forfeited | $ / shares | 10.74 |
Weighted Average Grant Date Fair Value Nonvested, Ending balance | $ / shares | $ 10.62 |
Share-Based Payment Awards - Em
Share-Based Payment Awards - Employee Stock Purchase Plan - Additional Information (Detail) - USD ($) | 3 Months Ended | ||||
Jun. 25, 2019 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Jun. 22, 2021 | |
Class Of Stock [Line Items] | |||||
Employee stock purchase plan | $ 248,000 | $ 201,000 | |||
Common stock, shares issued | 34,301,926 | 34,082,934 | |||
Stock-based compensation expense | $ 3,050,000 | 3,477,000 | |||
ESPP [Member] | |||||
Class Of Stock [Line Items] | |||||
Number of common stock, authorized for issuance | 110,000 | 250,000 | |||
Price of common stock purchased twice a year under ESPP, percent | 85% | ||||
Employee stock purchase plan | $ 25,000 | ||||
Employee stock purchase plan, shares | 5,000 | ||||
Consecutive six month offering period | Aug. 01, 2019 | ||||
Common stock, shares issued | 63,721 | ||||
Stock-based compensation expense | $ 47,000 | $ 33,000 |
Share-Based Payment Awards - Co
Share-Based Payment Awards - Compensation Expense from Stock-Based Payment Awards (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 3,050 | $ 3,477 |
Research and Development Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 1,240 | 1,473 |
Sales and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 430 | 409 |
General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 1,380 | $ 1,595 |
Share-Based Payment Awards - _5
Share-Based Payment Awards - Stock-Based Compensation Expense - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Share-Based Payment Arrangement [Abstract] | |
Unrecognized compensation expense | $ 11.9 |
Unrecognized compensation expense weighted average period | 1 year 8 months 12 days |
License and Asset Purchase Ag_2
License and Asset Purchase Agreements - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | |
Feb. 29, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | |
Collaborative Agreements And Contracts [Line Items] | |||
Research and development | $ 13,618,000 | $ 9,945,000 | |
Equinox Science, LLC [Member] | |||
Collaborative Agreements And Contracts [Line Items] | |||
Non-refundable and non-creditable upfront cash payment | $ 1,000,000 | ||
Research and development | $ 0 | $ 0 | |
Equinox Science, LLC [Member] | Maximum [Member] | |||
Collaborative Agreements And Contracts [Line Items] | |||
Payment upon achievement of development and regulatory milestones | $ 50,000,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | $ 16,718 | $ 48,928 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 116,510 | 131,158 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | 0 | (55) |
Fair Value | 116,512 | 131,103 |
Cash Equivalents | 99,794 | 82,175 |
Marketable Securities | 16,718 | 48,928 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 99,794 | 77,191 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 99,794 | 77,191 |
Cash Equivalents | 99,794 | 77,191 |
Marketable Securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 99,794 | 77,191 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 99,794 | 77,191 |
Cash Equivalents | 99,794 | 77,191 |
Marketable Securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 16,716 | 53,967 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | 0 | (55) |
Fair Value | 16,718 | 53,912 |
Cash Equivalents | 0 | 4,984 |
Marketable Securities | 16,718 | 48,928 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 2,783 | 18,701 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2,783 | 18,701 |
Cash Equivalents | 0 | 0 |
Marketable Securities | 2,783 | 18,701 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 13,933 | 35,266 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | 0 | (55) |
Fair Value | 13,935 | 35,211 |
Cash Equivalents | 0 | 4,984 |
Marketable Securities | $ 13,935 | $ 30,227 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 16,718,000 | $ 48,928,000 |
Interest-bearing cash equivalent consisted of money market fund | 99,800,000 | 77,200,000 |
Interest-bearing cash equivalent consisted of investment-grade U.S.Treasury securities | $ 0 | $ 5,000,000 |
Investment Instruments [Member] | Credit Concentration Risk [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of concentration risk | 100% | 93.90% |
Investment Instruments [Member] | Credit Concentration Risk [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of concentration risk | 6.10% |
Net Loss per Share - Potentiall
Net Loss per Share - Potentially Dilutive Securities Excluded from Computation of Diluted Weighted-Average Shares (Detail) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation | 6,448,335 | 4,590,335 |
Stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation | 6,069,096 | 3,974,102 |
ESPP [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation | 19,539 | 7,964 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation | 48,683 | 48,683 |
Restricted stock units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive common stock equivalents outstanding excluded from diluted earnings per share calculation | 311,017 | 559,586 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Research and development expense | $ 13,618,000 | $ 9,945,000 | |
Prepaid expenses | 2,443,000 | $ 2,723,000 | |
Altasciences Company Inc [Member] | |||
Related Party Transaction [Line Items] | |||
Research and development expense | 377,000 | $ 427,000 | |
Related parties payable | 304,000 | 201,000 | |
Prepaid expenses | $ 721,000 | $ 752,000 |